stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
Ch. 6 Test Review Flashcards | StudBud
Explore
/
Ch. 6 Test Review
Ch. 6 Test Review
38 terms
·
StudBud Administration
·
23 plays
Introduction to the basics of economics and systems
Flashcards
38 cards
F
Practice quiz
P
Host live
L
Questions
38
Answers
1
a market-based economic system with some government involvement
private property
mixed economy
laissez faire
economic transition
2
Which of the following describes the physical flow from households to firms?
goods and services
consumer expenditures
factors of production
wages, rent, dividends
3
How did heavy industry in the Soviet Union avoid competition?
The government banned the production of consumer goods.
Farms were not in direct competition with heavy industry.
The government used profit as an incentive to entrepreneurs.
The government determined prices, wages, and products.
4
a system to protect people experiencing unfavorable economic conditions
safety nets
factor payments
market exchange
soul glo
5
Requires strict obedience to a state or leader
Communism
Socialism
Capitalism
Authoritarian
6
the selling of state-run firms, which are then allowed to compete in the marketplace
laissez faire
privatization
mixed economy
Government intervention
7
How will consumers react to the incentive of a higher price on a good or service?
negative, buy more products
negative, buy less products
positive, buy more products
remain stable
8
Solar power and wind power are examples of what kind of resources?
labor
nonrenewable
capital
renewable
9
Which are the government’s three goals for promoting economic strength?
low unemployment, low prices, and low taxes
high employment, increased spending, and low taxes
steady growth, high prices, and innovation
high employment, steady growth, and stability
10
The United States government intervenes in the economy in order to
place barriers on foreign trade.
provide competition for firms.
protect laissez faire
promote the general welfare.
11
property owned by individuals or companies
laissez faire
economic transition
free enterprise system
private property
12
a major goal of socialist economies
economic equity
socialism
centrally planned economy
capitalism
13
When did the nation’s welfare system begin?
during the War on Poverty
during the Civil War
during the Great Depression
during World War I
14
In a command economy, the government regulates how goods and services are distributed.
False
True
15
another name for a centrally planned economy
economic equity
command economy
traditional economy
capitalism
16
A socialist society has a more flexible command economy than a communist society because
free market practices combined w/ central economic planning
the central government has all economic and political power.
an authoritarian government controls the economy.
the centers of economic power are all under private control
17
Why might the Soviet planners have favored heavy industry over the makers of consumer goods?
Consumer goods are not good economic investments.
The products of heavy industry brought in more money.
heavy industry products provide material for other industry
There were more people trained to work in heavy industry.
18
the doctrine that government generally should not intervene in the marketplace
free enterprise system
laissez faire
economic transition
private property
19
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.
20
The ________ system is another name for a market economy.
Free Enterprise
Socialist
Centrally Planned
Command
21
A political system in which the government owns all resources and production factors
capitalism
command economy
traditional economy
communism
22
What do people supply in return for factor payments?
innovation, profit, or goods
services, goods, or traditions
land, labor, or capital
innovation, labor, or trade
23
A difference between the economies of China and North Korea is that
China is privatizing state-run businesses.
North Korea has begun to introduce free market practices.
China does not allow ownership of private property
North Korea does not have a centrally-planned economy.
24
In a free enterprise system, who decides what will be produced?
firms
consumer
producers
government
25
Competition is a driving force in a free enterprise economy.
True
False
26
Traditional economies are usually
avoid change
adapt to innovation
27
the level of economic prosperity
standard of living
specialization
traditional economy
poverty threshold
28
The economic system in China today is different from the one
is socialist, not communist.
owns firms in major industries.
allows more economic freedom.
is not authoritarian.
29
The United States economy is a mixed economy based on
traditional economy but allows some government intervention
centrally planned economy but limiting govt intervention
a free market, allowing no government intervention.
a free market, but allowing some government intervention.
30
Government intervention in a modern economy is useful because
free market principles do not encourage growth
govts are more able to meet some needs and wants of society
marketplace w/ incentives to create public works like parks
marketplace always meets needs and wants of a modern society
31
Health insurance for the elderly, the poor, and the disabled is provided by
Worker’s Compensation.
Medicare and Medicaid.
the unemployment insurance program.
TANF
32
What is one of the most important principles of economics?
scarcity
money
distribution
globalization
33
To improve its standard of living, a nation’s economy must
reach economic equity
remain stable
allow the government to make decisions
grow throw innovation
34
period of change in which an economy moves from one economic system to another
laissez faire
Government intervention
economic transition
private property
35
a political system based on the belief that wealth should be evenly distributed
socialism
capitalism
communism
authoritarian
36
an economic system in which private individuals or corporations own capital goods
free enterprise system
privatization
mixed economy
private property
37
Which of the following philosophers recommended the free market
Vladimir Lenin
Friedrich Engels
Karl Marx
Adam Smith
38
an economy in which the government answers the key economic questions
centrally planned economy
traditional economy
command economy
capitalism
