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 do individuals do things based on customs and beliefs?
traditional
in which economic system does the government have the most control?
command
what is the economic system of most communist goods?
command
how do traditional economies exchange goods?
bartering (trading without using 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 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 yo 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 over the age of 15 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?
invested in human capital
what is the standard of living?
it 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 the other one is too
describe the “cycle of poverty”
once a community reaches poverty, it’s stuck there for generations
think about it: what things can a literate person expect to have in their life?
a high standard of living
what are the two types of government?
unlimited and limited
which type of government limits government power and prevents it from taking advantage of people?
limited
what are the two types of limited government?
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
dictators
absolute monarchy
