Economics And Government Test 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, 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 does the government have the most control?
Command
In which economic system do individuals do things based on customs & beliefs?
Traditional
What is the economic system of most communist countries?
Command
How do traditional economies exchange goods?
Bartering, (trading without having to use money)
Which country is closest to a true Market economy?
United States
Most democratic countries have which type of economic system?
Market
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
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?
How many people 15 and up that can read and write.
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 standard of living?
Measures how well-off the people are in a country
Draw arrows to represent the relationship between literacy rate and standard of living:
If one is high the other one is too, if one is low so is the other one.
Describe the “cycle of poverty”:
Once a community reaches poverty it is basically stuck there for generations.
What things can a literate person expect to have in his or her life?
A high standard of living
What are the two types of government?
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 government ruler
President, constitutional monarchy
Which type of government is not limited by any laws?
Unlimited
Give an example of an unlimited government ruler.
Dictator, absolute monarchy
