Econ & Govt Test Review Flashcards
What are the three basic questions that every economic system must answer?
What goods/services are produced or made? How will they be made and who will consume/buy them.
What are the three economic systems?
Traditional, command, market
The former Soviet Union was an example of what kind of economic system?
Command
What economic system allows for the most individual freedom?
Market
In which economic system does the government have the most control?
Command
In which economic system do individuals do things based on custom and beliefs?
Traditional
What is the economic system of most communist countries?
Command
How do traditional economies exchange goods?
Bartering- trading without using money
Which country is closest to a true market economy?
United States
Most democratic countries have which type of economic system?
Market
The government makes ALL economic decisions.
Command
In this system, your parents were peanut farmers, now you have be a peanut farmer too.
Traditional
Most democratic countries are this.
Market
Cuba is close to having this type of system.
Command
Business (ran by private citizens) determine what goods/services are produced and how they will be made.
Market
Which economic system uses bartering instead of money.
Traditional
Communist countries are closely related to this economic system.
Command
Businesses make economic decisions, but the government regulates them to make sure they are safe/fair.
Market
Australia’s economic system is close to this.
Market
A literate person is one who can
Read and write
What does literacy rate mean?
How many people above 15 can read and write in a certain area.
Is the rate of most European countries high or low
Very high
Why do you think European countries are this way
Because they invested in human capital
What is standard of living?
Measures how well of the people are in a country
Represent the relationship between literacy rate and standard of living is.
If one is high the other is too. If one is low the other is too.
Describe the circle of poverty
Once a community reaches a level of poverty it is stuck there for generations
What can a literate person expect to have in his or her life?
A high standard of living
What are the two types of government
Unlimited and limited
Which type of government limits government power and prevents it from taking advantage of people?
Limited
What are the two types of limited government
Direct and representative
Give an example of a limited government ruler
President, constitutional, monarchy
Which type of government is not limited by any laws?
Unlimited
Give an example of an unlimited government ruler
Dictators, absolute monarchy
