30 questions
Since the 1880's, the role of government in the United States has ________________.
decreased
been eliminated
increased significantly
had no impact on the economy
What motivates people to establish new businesses or expand existing ones?
private property
freedom of choice
government regulations
profit incentive
When the benefits of an economic action exceed the costs ______________.
economic efficiency increases
production of goods and services decreases
economic efficiency decreases
economic freedom decreases
The goal of economic stability is to reduce extreme ups and downs in the __________________.
minimum wage
factors of production
standard of living
nation's economy
Who owns the factors of production and makes economic decisions in a market economy?
individuals
economists
government
communities
Which of the following describes a free enterprise system?
individuals are free to own and control the factors of production
government owns and controls the factors of production
businesses cannot make a profit
there are no legal restrictions on freedom of enterprise
The goal of economic freedom is to ______________________.
allow the government to control the economy
allow each member of society to make choices
limit competition
prevent businesses from failing
All economic systems ____________________________.
produce the same goods
have the same resources
must answer the same three basic questions
distribute products through majority rule
One advantage of a controlled (command) economy is ________________.
the incentive to work hard
speed of rerouting resources
consumer choices
the opportunities for wealth
In a free enterprise system, who makes the decisions about what should be produced?
sellers
consumers
entrepreneurs
government
A law dealing with unemployment compensation helps provide ____________.
economic growth
economic security
economic stability
economic equity
Almost all economic systems today are ____________________.
traditional economies
command economies
mixed economies
market economies
Competition forces businesses to ___________________.
keep prices low
lower the quality of their products
raise prices
raise the costs of production
Economic equity deals with the issue of ___________________.
profit
fairness
choices
specialization
Which of the following groups of people have a traditional economy?
Australian Aboriginies
North Koreans
Chinese factory workers
Italian Americans
The system in which the government controls the factors of production and makes all the decisions about their use.
command economy
traditional economy
market
mixed economy
The system in which economic decisions are based on customs that have been handed down from generation to generation.
command economy
traditional economy
mixed economy
market
System combining characteristics of more than one type of economy.
traditional economy
mixed economy
market
command economy
The way in which a nation uses its resources to satisfy its people's needs and wants.
market
mixed economy
economic system
command economy
Freely chosen activity between buyers and sellers of goods and services.
Market
Command
Mixed
Traditional
Money left over after all the costs of production have been paid.
capitalism
laissez-faire
profit
private property
Economic system in which private individuals own the factors of production
competition
private property
capitalism
laissez-faire
Economic system in which the government lets people do as they choose.
traditional
command
laissez-faire
competition
Material well-being of an individual, group, or nation measured by how well necessities and luxuries are satisfied.
economic efficiency
economic equity
standard of living
economic growth
Expansion of the economy to produce more goods, jobs, and wealth.
economic efficiency
economic equity
economic growth
economic responsibility
Wise use of available resources so that costs do not exceed the benefits.
economic efficiency
economic equity
economic growth
economic responsibility
Obligation of individuals in a free enterprise system to function as productive members of society.
economic efficiency
economic equity
economic growth
economic responsibility
The attempt to balance an economic policy so that everyone benefits fairly.
economic efficiency
economic equity
economic growth
economic responsibility
Rivalry among producers or sellers of similar goods and services to win more business.
capitalism
laissez-faire
profit
competition
Whatever is owned by individuals rather than by government.
capitalism
laissez-faire
private property
profit