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Mr. Brown's Review of Economic Systems Flashcards | StudBud
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Mr. Brown's Review of Economic Systems
Mr. Brown's Review of Economic Systems
30 terms
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StudBud Administration
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Introduction to the basics of economics and systems
Flashcards
30 cards
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Practice quiz
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Host live
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Questions
30
Answers
1
What is one way the Constitution protects the free enterprise system?
It spells out the rights of consumers.
It establishes the principle of voluntary exchange.
It prevents the government from making contracts.
It recognizes private property rights.
2
Which are the government’s three goals for promoting economic strength?
steady growth, high prices, and innovation
high employment, steady growth, and stability
high employment, increased spending, and low taxes
low unemployment, low prices, and low taxes
3
What do people supply in return for factor payments?
innovation, profit, or goods
services, goods, or traditions
innovation, labor, or trade
land, labor, or capital
4
What is one way the government might try to promote economic growth?
raise taxes
reduce prices
increase spending
produce more goods
5
What is one of the most important principles of economics?
distribution
globalization
money
scarcity
6
Solar power and wind power are examples of what kind of resources?
capital
nonrenewable
renewable
labor
7
In a free enterprise system, who decides what will be produced?
consumer
producers
firms
government
8
Which of the following philosophers recommended the free market
Adam Smith
Karl Marx
Friedrich Engels
Vladimir Lenin
9
What does the process of specialization do for an economy?
It makes production more efficient.
It fosters competition.
It eliminates unemployment.
It makes labor easier to control.
10
Which of the following describes the physical flow from households to firms?
consumer expenditures
goods and services
factors of production
wages, rent, dividends
11
A person who believes that wealth should be evenly distributed throughout society is
an entrepreneur.
a communist.
a socialist.
a capitalist.
12
Which of the following is considered a "cash transfer"
grants
unemployment compensation
section 8
food stamps
13
Social Security withheld from your paycheck is for
cash transfers for the elderly and poor
cash transfers for those hurt on the job
401K retirement account
health insurance for the elderly and poor
14
What is the profit motive?
exchange of goods
opportunity for success
incentive to make money
money that a business makes
15
How will consumers react to the incentive of a higher price on a good or service?
positive, buy more products
negative, buy more products
remain stable
negative, buy less products
16
Health insurance for the elderly, the poor, and the disabled is provided by
Worker’s Compensation.
the unemployment insurance program.
Medicare and Medicaid.
TANF
17
How is the economic system in China today different from the one in Soviet Russia?
The Chinese government owns firms in major industries.
The Chinese government allows far more economic freedom.
The Chinese government is not authoritarian.
The Chinese government is socialist, rather than communist.
18
Traditional economies usually
adapt to innovation
avoid change
19
The United States economy is a mixed economy
centrally planned with no government intervention
free market with some government intervention
traditional economy with some government intervention
free market with no government intervention
20
The ________ system is another name for a market economy.
Socialist
Centrally Planned
Command
Free Enterprise
21
a system to protect people experiencing unfavorable economic conditions
market exchange
soul glo
safety nets
factor payments
22
the level of economic prosperity
standard of living
traditional economy
poverty threshold
specialization
23
When did the nation’s welfare system begin?
during the Great Depression
during the War on Poverty
during World War I
during the Civil War
24
To improve its standard of living, a nation’s economy must
reach economic equity
grow thru innovation
remain stable
allow the government to make decisions
25
In a command economy, the government regulates how goods and services are distributed.
True
False
26
Which is a positive externality of a new high school?
more noise in the neighborhood
student purchases at nearby stores
a raise in property taxes
more traffic on the roads
27
What is the government’s role in controlling externalities in the American economy?
encourage all externalities to increase competition
limit positive and encourage negative externalities.
encourage positive and limit negative externalities
limit all externalities to stop market failures.
28
Why does the government protect inventors and authors by offering them patents and copyrights?
to strengthen American culture
to encourage free trade
to regulate the business cycle
to promote innovation
29
Competition is a driving force in a free enterprise economy.
True
False
30
Roads and bridges are examples of how government provides
in kind benefits
market failure
grants
public goods
