Economics And Government Test Review

Question 1

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

Answer 1

What good/services are produced? How will the be made? Who will comsume 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 governemrt have the most control?

Answer 5

Command

Question 6

In which economic system do individuals do things based on customs and beliefs?

Answer 6

Traditional

Question 7

What is the economic system of the most communist countries?

Answer 7

Command

Question 8

How do tradional economies exchange goods?

Answer 8

Bartering

Question 9

Which country is the 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 the economic decisions?

Answer 11

Command

Question 12

In this system, yourwere peanut farmer, now you have to be a peanut farmer too.

Answer 12

Tradional

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

Communists 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

people 15 and up that can read an wrie

Question 22

Is the literacy rate of the most European countries high or low?

Answer 22

Very high

Question 23

Why do you think it is this way?

Answer 23

Invested in huamn capital

Question 24

What is standard of living?

Answer 24

Measures how well-off the people are in a country

Question 25

Draws arrow around represent the relationship between literacy rate and standard of living:

Answer 25

If one is high the other is too, if one is low so is the other one

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 high standard living

Question 28

What are the two types of government?

Answer 28

Limited and unlimited

Question 29

Which type of government limits govt power and prevent it from taking advantage of people?

Answer 29

Limited

Question 30

What are the 2 types of limited government?

Answer 30

Direct and Representative

Question 31

Give and example of a limited government ruler.

Answer 31

Presiden, constitutional monarchy

Question 32

Which type of government is not a limited by any laws?

Answer 32

Unlimited

Question 33

Give an example of unlimited government ruler

Answer 33

Dictator, absolute monarchy