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Unit 2 - A Better Economic Systems Quiz Flashcards | StudBud
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Unit 2 - A Better Economic Systems Quiz
Unit 2 - A Better Economic Systems Quiz
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1
Competition and self-interest are two important forces in
command economies
free market economies
traditional economies
socialist economies
2
Which of the following is
NOT
a key economic question?
Who consumes these goods and services
How to make sure that goods and services are paid for
what goods and services should be produced?
3
Which of the following is
NOT
a characteristic of a command economy?
the central government owns all land and capital
the central government makes all economic decisions
people and factories set their own production goals
4
The economic system of United States is considered a
free market capitalist economy
command economy
traditional economy
5
What best describes the role of government in a free enterprise system?
totally control business activities
Assist in allowing people to run their businesses to maximize profits
decide which companies are formed and who will manage them
to discourage people from creating new businesses and earning profit
6
Point B on the Business Cycle Diagram would represent what?
Trough
Contraction
Peak
Expansion
7
The two primary players in the circular flow model are:
people and stores
cats and dogs
households and businesses
households and people
8
Why are products made under a command economy more likely to be low quality?
the workers manage production facilities on their own
The government is completely hands off
the workers have little incentive to make them well
there are no quality control guidelines
9
a situation where households purchase goods and services from firms
factor market
Super Wal-Mart
product market
fire sale
10
Lowering unemployment, increasing interest rates, high consumer confidence would be found in what stage?
Contraction
Peak
Trough
Expansion
11
The method used by a society to produce and distribute goods and services
economic system
the way
sequencing
production
12
An economic system in which a country's trade and industry are controlled by
private owners
for profit.
Capitalism
Mercantilism
Fascism
Communism
13
Who owns the factors of production in a free market?
government
households
businesses
Mark Zuckerberg
14
What is the the positive externality of education?
Reduces umemployment rate
Helps people earn more income
Increases GDP, standard of living
All of the above
15
In which phase of the business cycle does inflation reach its highest level?
Trough
Peak
Recession
Expansion
16
What economic system offers the most flexibility?
Traditional
Command
Market
Socialism
17
Which of the following is NOT an example of a public good?
roads
national parks
a driveway
schools
18
Best Buy hires 2 new associates. What number would best represent this in the circular flow?
4
3
6
8
19
What does the circular flow model show us?
The economic relationships between governments, businesses, and households
all of the above
The flow of money, resources, and products around the economy
what different economic participants consume and produce
20
The lowest interest rates during a business cycle would be found at what point?
B
A
C
D
21
Steve spends $50 at Scheels. Which number in the circular flow would best represent this transaction?
7
1
2
5
22
What is the
factor
market?
the market in which income is received for selling finished goods
where land, labor, and capital are sold by households to businesses
market in which households buy land, capital, and labor from businesses
23
What was the theory of economist Adam Smith
A helping hand
The visible hand
The invisible hand
Lending a hand
