The basic issues that every nation's economic system addresses are __________.
|A)||the type of goods and services that should be produced, the quantity of each type of good and service produced, and who should share in their use.|
|B)||the type of goods and services that should be produced, what labor should be used to produce them, and who should distribute the goods and services.|
|C)||the types of goods and services that should be produced, the trade-offs required by producing each type of good and service, and who should produce them.|
|D)||the types of goods and services that should be produced, how the goods and services should be produced, and who should share in what is produced.|
The major types of economic systems are __________
|A)||traditional, command, and market.|
|B)||traditional, command, market, and mixed.|
|C)||traditional, market, and mixed.|
|D)||command, market, and mixed.|
The economic system that answers the three basic economic questions according to societal customs is called __________
Which of the following is NOT a major characteristic of a pure market economic system?
|A)||lack of competition|
|B)||freedom of enterprise|
|C)||freedom of choice|
|D)||little or no government control|
Which statement about the role of government in the United States today is TRUE?
|A)||The ideas introduced by Adam Smith influence the federal government as much today as they did when the Constitution was written.|
|B)||The role of government—federal, state, and local—over economic activities has increased significantly since the 1880s.|
|C)||Although the federal government provides many more public services today, it is still forbidden to regulate private business in any way.|
|D)||The limits imposed on the federal government by the Constitution are the same today as when it was written.|
Which statement about the United States's free enterprise system is NOT TRUE?
|A)||The main reason that people produce goods and services is the profit incentive.|
|B)||Individuals are free to buy whatever they can afford.|
|C)||Laws that set safety standards protect buyers but limit freedom of choice.|
|D)||Entrepreneurs are guaranteed unrestricted freedom and financial success.|
Each of the following statements about the American economy is true EXCEPT __________
|A)||"Freedom of choice" in our economic system means that buyers, not sellers, make the decisions about what should be produced.|
|B)||Competition among businesses has the effect of forcing the prices of goods and services down.|
|C)||"Profit incentive" can be described as the motivating factor behind an entrepreneur establishing a business.|
|D)||"Private property" refers to land owned by Americans.|
Which of the following fulfills the goal of security in a market economy?
|A)||an employer paying the minimum wage to unskilled workers|
|B)||the government paying Medicare|
|C)||a nation using its limited resources wisely|
|D)||an individual choosing to start a business|
Which of the following is NOT an advantage of the American free enterprise system?
|A)||Individuals may choose from a wide range of lifestyles.|
|B)||Americans enjoy a high standard of living.|
|C)||Individuals do not have to take on any economic or political responsibilities.|
|D)||Individuals enjoy a high degree of economic and personal freedom.|