Economics and government review Flashcards
What are the three basic questions that every economic system must answer?
What goods/services are produced? How will they be made? Who will consume them?
What are the three economic systems?
Traditional, Command, and Market
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 do individuals do things based on customs & beliefs?
Traditional
In which economic system does the government have the most control?
Command
What is the economic system of most communist countries?
Command
How do traditional economies exchange goods?
Bartering
Which country is closest to a true Market economy?
United States of America
Most democratic countries have which type of economic system?
Market
In which system does the government make all economic decisions?
Command
In this system, your parents were peanut farmers, now you have to 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’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.
The percentage of people who can read and write at the age of fifteen or older
Is the literacy rate of most European countries high or low?
High
Why do you think it is this way?
Invested in human capital
What is the standard of living?
Measures how well-off people are in a country
