economics and government 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 do individuals do things based on customs and beliefs?

Answer 5

traditional

Question 6

in which economic system does the government have the most control?

Answer 6

command

Question 7

what is the economic system of most communist goods?

Answer 7

command

Question 8

how do traditional economies exchange goods?

Answer 8

bartering (trading without using money)

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

in this system, your parents were peanut farmers, now you have to 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

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 yo 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 over the age of 15 that can read and write

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

invested in human capital

Question 24

what is the standard of living?

Answer 24

it measures 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 other one is too

if one is low the other one is too

Question 26

describe the “cycle of poverty”

Answer 26

once a community reaches poverty, it’s stuck there for generations

Question 27

think about it: what things can a literate person expect to have in their life?

Answer 27

a high standard of living

Question 28

what are the two types of government?

Answer 28

unlimited and limited

Question 29

which type of government limits government power and prevents it from taking advantage of people?

Answer 29

limited

Question 30

what are the two types of limited government?

Answer 30

direct and representative

Question 31

give an example of a limited government 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

dictators

absolute monarchy