Fall Economics Exam Part 2 Questions 26-50

Front

One result of competition in a free enterprise system is--

Back

lower prices for products

Front

Which characteristic of the U.S. free enterprise system creates the incentive to work, save, and invest? Options: a) Social Security system, b) Voluntary exchanges, c) Private property ownership, d) Consumer sovereignty

Back

Private property ownership

Front

Based on the information in the excerpt, what economic condition indicates that Sweden's economy is based on socialism despite its use of free market reforms?

Back

Government funding of education and healthcare

Front

Which of the following best completes the graphic? a) Stock Exchange, b) Federal Reserve System, c) Treasury Department, d) Washington, D.C.

Back

Federal Reserve System

Front

Which of the following is largely responsible for the growth of a free enterprise system? a) Government, b) Profit motive, c) Gross Domestic Product, d) Market Efficiency

Back

Profit motive

Front

How does new money enter into circulation in the United States? a) It is distributed by banks, which get it from the Federal Reserve b) It is distributed to taxpayers each year in the form of tax refunds. c) Large businesses use the Federal Reserve to exchange their old money for new. d) The FDIC distributes new money when insurance claims are paid out to Federal stockholders.

Back

It is distributed by banks, which get it from the Federal Reserve.

Front

All of these statements are true of---
The most important source of state government revenue.
Primarily transferred from federal government to state governments.
The most important source of local government revenue.

Back

intergovernmental revenue

Front

The smallest form of business organization is the _____.

Back

sole proprietorship

Front

34. Division of labor is practiced because _____?

Back

it increases efficiency by ensuring that workers become good at specific tasks.

Front

Which of the following statements best describes the purpose of the production possibilities curve? a) It predicts the future production of a nation. b) it identifies trends in production. c) It shows which products are most profitable. d) It identifies all possible combinations of goods and services an economy can produce.

Back

It identifies all possible combinations of goods and services an economy can produce.