Econ 1st Sem Exam 24 Part 2

Front

What is a key factor of American Free Enterprise? Options: Centralized planning, Government ownership, Self Interest, Collectivism

Back

Self Interest

Front

According to the U.S. Constitution, what protects private property from being taken without due process?

Back

5th Amendment

Front

What is one negative effect of government regulation? Options: Encourages innovation, Stifles competition, Reduces government spending, Increases consumer choice

Back

Stifles competition

Front

What is the principle of consumer sovereignty?

Back

Consumers dictate what producers make.

Front

What does the term "eminent domain" refer to?

Back

Government taking property for public use with compensation

Front

What is one way the US government encourages economic growth and stability?

Back

Promoting a high employment rate

Front

What is the business cycle?

Back

A pattern of expansion and contraction in the economy.

Front

Which economic measure represents a nation's well-being? Options: Stock market index, Consumer Price Index, Inflation rate

Back

Gross domestic product

Front

What does the government do to promote price stability?

Back

Prevent sudden drastic shifts in price

Front

What is a public good?

Back

A shared good or service that it is inefficient to charge individually for.