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BU20 Module 1; Economics Flashcards | StudBud
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BU20 Module 1; Economics
BU20 Module 1; Economics
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review 4 types of economic systems
Flashcards
10 cards
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Practice quiz
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Questions
10
Answers
1
How does a bear market impact the U.S. economy?
Businesses will be able to hire more workers.
Business sales will increase rapidly.
Consumers will be able to spend more money.
Consumers will spend less money and save more.
2
How does the Federal Reserve impact the U.S. economy?
Circulates more money to stimulate consumer purchasing
Raises interest rates to stimulate consumer purchasing
Decreases money circulation to help businesses
Raises interest rates to increase employment opportunities
3
What is a characteristic of a command economy compared with other types of economic systems?
Government provides an equal standard of living for everyone
Consumers make the decisions about what is produced.
Decisions are based on customs and traditional thinking.
Business owners make their own economic decisions.
4
Sonic began offering salads, Hardees also started to sell salads. This is an example of:
competition.
private property ownership.
self-interest and profit motive.
freedom of enterprise and choice.
5
Compare the way economic decisions are made in an Amish community to that of Russia.
The Amish make decisions based on tradition.
Individuals and government make the decisions for the Amish.
Individuals make the decisions in Cuba.
Tradition dictates how decisions are made in Cuba.
6
What is a difference between a traditional economy and a free enterprise system?
Supply/demanddrive economic decisions in a free enterprise.
The free enterprise system focuses on family.
Competition determines decisions in a traditional economy.
Traditional free enterprise system decisions are made.
7
What is an advantage of the market portion of the United States economic system?
Consumers only purchase what the government allows.
There is no government regulation of any businesses.
Government tells business what to produce based on supply.
Businesses determine what to produce based on demand.
8
What is a difference between a market economy and a command economy?
The government ensures competition in a command economy.
Competition provides consumers choices in a market economy.
Supply and demand determine prices in a command economy.
The government selects what is produced in a market economy.
9
What is a DISADVANTAGE of a traditional economy compared to other types of economic systems?
State-of-the-art technology is not used.
Competition guides production decisions.
Decisions are centered toward the family.
Government takes care of people's needs.
10
What is an ADVANTAGE of a market economy compared with a traditional economy?
there is an equal standard of living for everyone.
the government decides what is produced.
economic decisions are made the same as always.
innovation and competition in the marketplace are encouraged
