stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
Chapters 2 & 3 Quiz Review Flashcards | StudBud
Explore
/
Chapters 2 & 3 Quiz Review
Chapters 2 & 3 Quiz Review
15 terms
·
StudBud Administration
·
136 plays
The basics of economics
Flashcards
15 cards
F
Practice quiz
P
Host live
L
Questions
15
Answers
1
Which of the following is a way that the government works to correct negative externalities
all of the above
recycling
detours
doing construction when the roads aren't busy
2
One negative externality of building a bridge is
revenue from tolls
Noise and Traffic
more customers for businesses
faster way to work
3
What did economist Adam Smith identify as the "invisible hand" that guides the free market?
self-interest
International trade
the entrepreneur
The government
4
What explains why products made under a command economy are likely to be low in quality?
Workers who make them aren't given quality control training
Workers fear success
Workers have little incentive to make them work well
Workers are forced to use tradition
5
____________ is when producers focus their resources and effort to one or a few goods/services
mass production
specialization
markets
production
6
Eminent domain is when ___________ seize private property in exchange for compensation ($)
your family
your neighbor
the government
private corporations
7
One positive externality of building a bridge is:
pollution
More traffic
faster route to take to work
More noise
8
What type of economy does the USA have?
mixed, but mostly command
free market
mixed, but mostly free market
traditional
9
Welfare, social security, and medicare are all examples of _____________
safety net programs
products
companies
sweepstakes
10
Which of these statements is descriptive of a free market economy?
Individuals and businesses own the factors of production
Goal is to create a classless society
The gov't makes most economic decisions
The gov't tells individuals and businesses what to produce
11
True or False: Everyone makes the same amount of money in a free market economy
False
True
12
An example of a country with a command economy is
USA
North Korea
Canada
Mexico
13
The FDA, EPA, and FDIC are all examples of ________________
federal regulatory agencies
corporations
business names
governments
14
Economy based on habit, custom, or ritual
Command
Mixed
Traditional
Free Market
15
Which type of economy is most common today in the world?
Mixed
Command
Traditional
Market
