Economics and government test rewiew

Question 1

What are the three basic questions that every economic system must answer

Answer 1

What goods are produced? How will they be made? Who will consume them?

Question 2

What are the three economic questions?

Answer 2

Traditional, Command, and market

Question 3

The former Soviet Union was an example of what kind of economic system?

Answer 3

Command

Question 4

What economic system allows the most individual freedom?

Answer 4

Market

Question 5

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

Answer 5

Command

Question 6

In which system do individuals do things based on their custom beliefs?

Answer 6

Traditional

Question 7

What is the economic system of the most communist countries?

Answer 7

Command

Question 8

How do traditional economies exchange goods?

Answer 8

Bartering/ trading without using money

Question 9

Which county is closest to a true marketing country?

Answer 9

U.S.A

Question 10

Most democratic countries have which type of economic system?

Answer 10

Market

Question 11

11.The government makes ALL economic decisions.

Answer 11

Command

Question 12

In this system, your parents were peanut farmers, now you have be a peanut farmer too.

Answer 12

Traditional

Question 13

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 to make sure t􏰀he􏰁􏰂􏰃y’re s􏰄afe/fai􏰃r.

Answer 18

Market

Question 19

19. Australia’s economic system is close to this

Answer 19

Market

Question 20

20. A literate person is one who can

Answer 20

Read and write

Question 21

21. What does “literacy rate” mean?

Answer 21

how many people that can read and write of age 15 or up

Question 22

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

Answer 22

Very high

Question 23

Why do you think it is this way?

Answer 23

They invested in human capital

Question 24

What is the standard of living

Answer 24

Measures how well off people are ina country

Question 25

Draw arrows to represent the relationship between literacy rate and standard of living:

Answer 25

If one is high the other is too. if one is low the other is too

Question 26

26.De􏰄c􏰃ibe t􏰀he 􏰈c􏰁ycle o􏰅f lif􏰊􏰅􏰋e􏰃􏰀􏰁􏰉:

Answer 26

Once a community 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 of living

Question 28

What are the two types of government?

Answer 28

Limited and unlimited

Question 29

Which type of government limits govt power & prevents it from taking advantage of people?

Answer 29

Limited

Question 30

What are the 2 types of Limited Govt?

Answer 30

Direct and representative

Question 31

Give an example of a limited govt 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

Dictator, absolute monarchy