200 pt 300 pt 400 pt 500 pt 100 pt 200 pt 300 pt 400 pt 500 pt 100 pt 200pt 300 pt 400 pt 500 pt 100 pt 200 pt 300 pt 400 pt 500 pt 100 pt 200 pt 300 pt 400 pt 500 pt 100 pt Economic Structures Examples Of Structures Government Intervention Key TermsDefinitions

Which of these is a key economic question faced by countries? A) How big should the army be? B) How much money should be raised in taxes? C) How many schools should be built? D) What goods and services should be produced?

D

In a traditional economy, economic decisions are based largely on

Custom

Competition and self interest are two important forces in:

free market economies

Which economic goals are best promoted by the free market?

efficiency and freedom

Which is true of the government in a centrally planned economy? A) It builds every house in every village. B) It encourage workers to innovate C) it makes all important economic decisions D) it places much emphasis on the production of consumer goods

it makes all important economic decisions

Socialists believe that economic equality is only possible if: A)everyone makes the same amount of money B) the public controls the economy C) medical care is free D) no one has to pay taxes

everyone makes the same amount of money

The former Soviet Union was an example of a communist country where: A)individual freedom was allowed B) free enterprise was encouraged C) consumers had many choices D) most economic and political power was controlled by the government

most economic and political power was controlled by the government

Which of the following countries has the most extreme example of a centrally planned economy? North Korea Hong Kong China Great Britain

North Korea

The free enterprise system of the United States is best described as a A) free market economy B) traditional economy C) mixed economy with limited government intervention and a great deal of economic freedom D)mixed economy with equal amounts of economic freedom and government intervention

mixed economy with limited government intervention and a great deal of economic freedom

The United States economy is a mixed economy (a) based on the principle of a traditional economy, but allows some government intervention. (b) based on the principles of a centrally planned economy, with limited government intervention. (c) based on the principles of the free market, and allows no government intervention. (d) based on the principles of the free market, but allows some government intervention.

Government intervention in a modern economy is useful because (a) the needs and wants of modern society are always met by the marketplace. (b)the marketplace has many incentives to create public goods such as parks and libraries. (c)governments are able to provide some goods and services that the marketplace has no incentive to produce. (d) the marketplace provides all of its own laws.

(c)governments are able to provide some goods and services that the marketplace has no incentive to produce.

The government encourages advances in technology and improvements in productivity by (a) maintaining steady price controls. (b) funding research and development projects at many levels. (c) hiring more workers to reduce unemployment. (d) regulating banks and other financial institutions.

(b) funding research and development projects at many levels.

What is government's role in controlling externalities in the American economy? (a) government tries to encourage positive externalities and limit negative externalities (b) government tries to limit all externalities because they represent market failure (c) government tries to limit positive externalities and encourage negative externalities (d) government tries to encourage all externalities so that the market will be competitive

(a) government tries to encourage positive externalities and limit negative externalities

Welfare includes all of the following EXCEPT (a) Temporary Assistance to Needy Families (b) Occupational Safety and Health Administration (c) Social Security (d) Medicaid

(b) Occupational Safety and Health Administration

Policymakers pursue three main outcomes as they seek to stabilize the economy.

Employment, Growth, Stability

The drive for the improvement of material well-being.

Profit Motive

The ability for anyone to compete in the marketplace.

Open Opportunity

Equal rights to all.

Legal Equality

The right to control your possessions as you wish.

Private Property Rights

The right to decide what agreements in which you want to take part.

Free Contracts

The right to decide what and when you want to buy and sell a product.

Voluntary Exchange

The rivalry among sellers to attract consumers.

Competition

goods and services provided by the government for free or at greatly reduced prices

In-kind benefits

gross domestic product (GDP)

the total value of all final goods and services produced in a particular economy.

_____________is someone who would not choose to pay for a certain good or service, but who would get the benefits of it anyway if it is provided as a public good.

Free Rider