Economics And Goverment Test Review

Question 1

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

Answer 1

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

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

Barter

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

Most democratic countries are this.

Answer 12

Market

Question 13

Cuba is close to having this type of system

Answer 13

Command

Question 14

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

Answer 14

Traditional

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 and write

Question 21

What does “literacy rate” mean?

Answer 21

How many

people can read above the age 15 and up

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

The invested in human capital

Question 24

What is standard of living?

Answer 24

How well-off the people are in a country.

Question 25

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

Answer 25

If one is high the is other is and same with low

Question 26

Describe the “cycle of poverty”:

Answer 26

Once a community reaches poverty it is stuck there for generations.

Question 27

Think About It: What things can a literate person expect to have in his or her life?

Answer 27

A good standard of living

Question 28

What are the two types of government?

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

Derect and representative

Question 31

Give an example of a limited govt ruler

Answer 31

President, mochary and constitutional

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 and absolute monchary