Econ. & Gov. Test Review

Question 1

What are the 3 basic questions that every economic system

Answer 1

What goods/services are produced? How will they be made? Who will consume them?

Question 2

What are the 3 economic systems

Answer 2

Traditional, Command, & Market

Question 3

The former Soviet Union was an example of what kind of economic system

Answer 3

Command

Question 4

Which economic system allows for the most individual freedom

Answer 4

Market

Question 5

In which economic system does the government have the most control

Answer 5

Command

Question 6

In which economic system do individuals do things based on customs & beliefs

Answer 6

Traditional

Question 7

What is the economic system of most communist countries

Answer 7

Command

Question 8

How do traditional economies exchange goods

Answer 8

Bartering

Question 9

Which country is closest to a true Market economy

Answer 9

USA

Question 10

Most democratic countries have which type of economic system

Answer 10

Market

Question 11

The government makes ALL economic decisions

Answer 11

Command

Question 12

In this system, your parents were peanut farmers, now you have to be a peanut farmer too

Answer 12

Traditional

Question 13

Most democratic countries are this

Answer 13

Market

Question 14

Cuba is close to having this type of system

Answer 14

Command

Question 15

Business (ran by private citizens) determine what goods/services are produced and how they will be made

Answer 15

Market

Question 16

Which Economic system uses Bartering instead of money

Answer 16

Traditional

Question 17

Communist countries are closely related to this economic system

Answer 17

Command

Question 18

Businesses make economic decisions, but the government regulates them to make sure they’re safe/fair

Answer 18

Market

Question 19

Australia’s economic system is close to this

Answer 19

Market

Question 20

A literate person is one who can

Answer 20

Read & Write

Question 21

What does “literacy rate” mean

Answer 21

People 15 & up that can read & write

Question 22

Is the literacy rate of most European countries high or low

Answer 22

Very high

Question 23

Why do you think it is this way

Answer 23

Invested in Human Capital

Question 24

What is standard of living

Answer 24

Measures how well-off the people are in a country

Question 25

Draw arrows to represent the relationship between literacy rate and standard living

Answer 25

If one is high the other is too, if one is low so is the other one

Question 26

Describe the “cycle of poverty”

Answer 26

Once a community reaches poverty it is stuck there for generations

Question 27

What things can a literate person expect to have in his or her life

Answer 27

A high standard of living

Question 28

What are 2 types of government

Answer 28

Limited & Unlimited

Question 29

Which type of government limits govt. power & prevents it from taking advantage of people

Answer 29

Limited

Question 30

What are 2 types of Limited Govt.

Answer 30

Direct & Representative

Question 31

Give an example of a limited govt. ruler

Answer 31

Presidents, Constitutional Monarchy

Question 32

Which type of government is not limited by any laws

Answer 32

Unlimited

Question 33

Give an example of an unlimited government ruler

Answer 33

Dictators, Absolute Monarchy