Economic & Government Test Review

Question 1

What are the 3 basic questions that every economic system must answer?

Answer 1

What product/service will be produced? How will it be made? And how will it be consumed?

Question 2

What are the 3 economic systems?

Answer 2

Market, traditional, command.

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 allows for the most control?

Answer 5

Command

Question 6

In which economic system do the individuals do the based on customs & beliefs?

Answer 6

Traditional

Question 7

What’s the economic system of the most communist countries?

Answer 7

Command.

Question 8

How do traditional economies exchange goods?

Answer 8

Bartering

Question 9

Which country is the closet to a true Market economy?

Answer 9

United States

Question 10

Most democratic countries have which type of economic system?

Answer 10

Command

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

Businesses (ran by private citizens) determine what good/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 and write

Question 21

What does literacy rate mean?

Answer 21

Percentage of ppl that can read and write over the age of 15

Question 22

Is the literacy rate of most European countries high or low?

Answer 22

High

Question 23

Why do you think it is this way?

Answer 23

They invested in human capital.

Question 24

What is the standard of living?

Answer 24

How well off a country’s population is

Question 25

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

Answer 25

One is high, the other who is too, if one is low then so is the other.

Question 26

Describe the circle of poverty:

Answer 26

If a community hits poverty it takes a generation to recover/get out of poverty.

Question 27

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

Answer 27

High standard of living.

Question 28

What are the two types of governments?

Answer 28

Limited and unlimited

Question 29

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

Answer 29

Limited

Question 30

What are the 2 types of limited govt?

Answer 30

Direct and representative

Question 31

Give an example of a limited govt 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

Dictator or absolute monarchy