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Duplicate of Economic Systems Flashcards | StudBud
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Duplicate of Economic Systems
Duplicate of Economic Systems
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StudBud Administration
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Introduction to the basics of economics and systems
Flashcards
20 cards
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Practice quiz
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Questions
20
Answers
1
Solar energy, wind and water are examples of what kind of resources?
labor
capital
land
nonrenewable
2
What does the process of specialization do for an economy?
It eliminates unemployment.
It fosters competition.
It makes labor easier to control.
It makes production more efficient.
3
Competition between households and business is a driving force in a market economy.
False
True
4
What is the most pressing issue that all economic systems face?
distribution
scarcity
globalization
money
5
Which of the following describes the flow of resources from households to firms?
product market
goods and services
wages, rent, dividends
resource market
6
Traditional economies usually
avoid change
adapt to innovation
7
Why does the government protect inventors and authors by offering them patents and copyrights?
to regulate the business cycle
to strengthen American culture
to encourage free trade
to promote innovation
8
What is the government’s role in controlling externalities in the American economy?
limit all externalities to stop market failures.
limit positive and encourage negative externalities.
encourage all externalities to increase competition
encourage positive and limit negative externalities
9
What is the profit motive?
exchange of goods
money that a business makes
opportunity for success
the main motive of all businesses
10
What are the households sellers of in the resource market?
land, labor, or capital
innovation, labor, or trade
innovation, profit, or goods
services, goods, or traditions
11
In a free enterprise system, who makes most production and consumption decisions?
government and businesses
firms
households and businesses
producers and government
12
The ________ system is another name for a market economy.
Socialist
Capitalist
Centrally Planned
Command
13
Roads and bridges are examples of how government provides
in kind benefits
grants
market failure
public goods
14
This system believes that wealth should be evenly distributed throughout society
sociaism
communism
capitalism
traditional economies
15
Which IS NOT one of the three questions all economic systems must answer
Who to produce goods and services for?
How to produce goods and services?
How are goods and services to be paid for?
What goods and services to produce?
16
Which of the following is one of the five goals of a market economy?
reach economic equity
safety and security
grow and innovation
allow the government to make decisions
17
What is one way the government might try to promote economic growth?
providing subsidies and tax breaks
reduce prices
raise taxes
produce more goods
18
Which is a positive externality of a new high school?
student purchases at nearby stores
a raise in property taxes
more noise in the neighborhood
more traffic on the roads
19
The United States economy is a mixed economy. The type of economy America models is a
traditional economy with some government intervention
free market with no government intervention
free market with some government intervention
centrally planned with no government intervention
20
In a command economy, the government regulates how goods and services are distributed.
False
True
