ECONOMICS UNIT 4 PT 1 TEST

THE UNITED STATES MODIFIED FREE ENTERPRISE ECONOMIC SYSTEM IS A TYPE OF__________

• Mixed economy

• Multi-layered economy

• Democratic socialist economy

• Communism

THE GOVERNMENT IS BOTH A CONSUMER & PRODUCER IN THE UNITED STATES ECONOMY.

• true

• false

GOODS & SERVICES THAT ARE PRODUCED BY THE GOVERNMENT & CONSUMED BY THE PUBLIC AS A GROUP ARE KNOWN AS _________

• PUBLIC GOODS

• PRIVATE GOODS

• SAFETY NET

• ENTITLEMENTS

THE MAJOR JUSTIFICATION FOR GOVERNMENT INTERVENTION IN THE UNITED STATES ECONOMIC SYSTEM ARE _____________

• MARKET FAILURES

• CRADLE TO GRAVE BENEFITS

• THE NANNY STATE

• WELFARE

WHICH OF THE FOLLOWING IS NOT AN EXAMPLE OF A MARKET FAILURE?

• SECOND HAND SMOKE

• ROTTEN EGGS FOR SALE

• POLLUTION IN THE GREAT LAKES

• GOING FOR A WALK IN THE WOODS

PUBLIC GOODS CAN BE EXCLUDED FROM THOSE THAT DO NOT PAY FOR THEM.

• TRUE

• FALSE

SIDE EFFECT OF A TRANSACTION THAT AFFECTS SOMEONE OTHER THAN THE PRODUCER OR CONSUMER BADLY

• Positive externality

• Adverse effect
• Negative externality
• Harmful consequence

A GOVERNMENT PROGRAM DESIGNED TO PROTECT PEOPLE FROM ECONOMIC HARDSHIPS.

• Safety net

• free rider

• subsidy

• externality

A __________ ADDRESSES ISSUES OF WHO HAS POWER & AUTHORITY TO MAKE DECISIONS FOR A COUNTRY

• Economics
• Biology
• Chemistry
• Government

WHICH OF THE FOLLOWING IS NOT A QUESTION ALL ECONOMIC SYSTEMS ANSWER?

• WHAT IS PRODUCED?

• HOW IS IT PRODUCED?

• FOR WHOM IS IT PRODUCED?

• WHAT IS SUPPLY AND DEMAND