Economics And Government Test Review Flashcards
What are the three basics questions that every economic system must answer?
What good/services are produced? How will the be made? Who will comsume 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 governemrt have the most control?
Command
In which economic system do individuals do things based on customs and beliefs?
Traditional
What is the economic system of the most communist countries?
Command
How do tradional economies exchange goods?
Bartering
Which country is the closest to a true Market economy?
United States
Most democratic countries have which type of economic system?
Market
The government makes ALL the economic decisions?
Command
In this system, yourwere peanut farmer, now you have to be a peanut farmer too.
Tradional
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
Communists 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?
people 15 and up that can read an wrie
Is the literacy rate of the most European countries high or low?
Very high
Why do you think it is this way?
Invested in huamn capital
What is standard of living?
Measures how well-off the people are in a country
Draws arrow around represent the relationship between literacy rate and standard of living:
If one is high the other is too, if one is low so is the other one
Describe the “cycle of poverty”:
Once a community reaches poverty it is stuck there for generations
Think About It: What things can a literate person expect to have in his or her life?
A high standard living
What are the two types of government?
Limited and unlimited
Which type of government limits govt power and prevent it from taking advantage of people?
Limited
What are the 2 types of limited government?
Direct and Representative
Give and example of a limited government ruler.
Presiden, constitutional monarchy
Which type of government is not a limited by any laws?
Unlimited
Give an example of unlimited government ruler
Dictator, absolute monarchy
