Econ & Govt Test Review

Question 1

What are the three basic questions that every economic system must answer?

Answer 1

What goods/services are produced or made? How will they be made and who will consume/buy them.

Question 2

What are the three 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

What 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 custom and 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- trading without using money

Question 9

Which country is closest to a true market economy?

Answer 9

United States

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 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 are 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 and write

Question 21

What does literacy rate mean?

Answer 21

How many people above 15 can read and write in a certain area.

Question 22

Is the rate of most European countries high or low

Answer 22

Very high

Question 23

Why do you think European countries are this way

Answer 23

Because they invested in human capital

Question 24

What is standard of living?

Answer 24

Measures how well of the people are in a country

Question 25

Represent the relationship between literacy rate and standard of living is.

Answer 25

If one is high the other is too. If one is low the other is too.

Question 26

Describe the circle of poverty

Answer 26

Once a community reaches a level of poverty it is stuck there for generations

Question 27

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

Answer 27

A high standard of living

Question 28

What are the two types of government

Answer 28

Unlimited and limited

Question 29

Which type of government limits government power and prevents it from taking advantage of people?

Answer 29

Limited

Question 30

What are the two types of limited government

Answer 30

Direct and representative

Question 31

Give an example of a limited government ruler

Answer 31

President, 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