Unit 1: CFA 3 (Standard 3)

Front

In a command economy, what does the government or central planner decide to produce?

Back

The government or central planner decides what to produce.

Front

In a market economy, how are goods and services produced?

Back

Goods and services are produced based on consumer demand and the profit motive.

Front

In a command economy, how is the distribution of goods and services decided?

Back

By the government or central authority

Front

What does economic security refer to?

Back

Protecting individuals and businesses from risk

Front

Which of the following is an example of economic equity?

Back

Providing equal access to jobs, goods, and services

Front

Which of the following is an example of a nonrival good? A private tutoring session, A public park, A sandwich, A pair of shoes

Back

A public park

Front

What characteristic defines a nonrival good?

Back

Its consumption by one person does not reduce availability to others.

Front

What is the "free-rider" problem associated with nonexcludable goods?

Back

Someone benefits from a good or service without paying for it.

Front

Deregulation

Back

The removal of production rules from an industry

Front

People can make whatever they want as producers and buy whatever they like as consumers because the government has no power in the economy.

Back

Market