Economic & Government Test Review Flashcards
What are the 3 basic questions that every economic system must answer?
What product/service will be produced? How will it be made? And how will it be consumed?
What are the 3 economic systems?
Market, traditional, command.
The former Soviet Union was an example of what kind of economic system?
command
Which economic system allows for the most individual freedom?
Market
In which economic system allows for the most control?
Command
In which economic system do the individuals do the based on customs & beliefs?
Traditional
What’s the economic system of the most communist countries?
Command.
How do traditional economies exchange goods?
Bartering
Which country is the closet to a true Market economy?
United States
Most democratic countries have which type of economic system?
Command
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.
Businesses (ran by private citizens) determine what good/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’re 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?
Percentage of ppl that can read and write over the age of 15
Is the literacy rate of most European countries high or low?
High
Why do you think it is this way?
They invested in human capital.
What is the standard of living?
How well off a country’s population is
Draw arrows to represent the relationship between literacy rate and standard of living:
One is high, the other who is too, if one is low then so is the other.
Describe the circle of poverty:
If a community hits poverty it takes a generation to recover/get out of poverty.
What things can a literate person expect to have in his or her life?
High standard of living.
What are the two types of governments?
Limited and unlimited
Which type of government limits govt. power & prevents it from taking advantage of people?
Limited
What are the 2 types of limited govt?
Direct and representative
Give an example of a limited govt ruler.
President, constitutional monarchy.
Which type of government is not limited by any laws?
Unlimited
Give an example of an unlimited government ruler.
Dictator or absolute monarchy
