Economic Goals and Systems Flashcard

Front

A federal law requiring employers to pay workers at least a certain wage (minimum wage) supports the goal of:

Back

Security

Front

A sales tax on all goods would take a larger share of income from poorer families. Exempting food and clothing from the tax is mainly about:

Back

Equity

Front

Which of the following shows economic growth? A new Tesla factory opens and hires 2,000 workers. A man changes careers from teaching to construction. The price of gas increases suddenly. A company refuses to hire women for leadership positions.

Back

A new Tesla factory opens and hires 2,000 workers.

Front

When COVID-19 caused many Americans to lose their jobs in 2020, which economic goal became most important to protect? Options: Freedom, Security, Equity, Efficiency

Back

Security

Front

If the U.S. is able to produce large numbers of electric vehicles efficiently, but most consumers do not want them, then the economy is lacking:

Back

Allocative Efficiency

Front

Every morning you buy a $4 latte at a local café. The business is happy to sell it, and you are satisfied with your purchase. Which economic goal does this represent?

Back

Freedom

Front

Which of the following is considered an advantage of a command economy? Economic decisions are well coordinated. There are rarely shortages of needed items. Decisions do not cause hardship for people. The government tries to provide for all citizens.

Back

Economic decisions are well coordinated.

Front

Which is an advantage of a traditional economy?

Back

There is little argument about goals.

Front

Which is an advantage of a market economy? Options: Strong job protection for workers., Everyone gets goods regardless of income., Wide variety of goods and services., Shared agreement on goals and priorities.

Back

Wide variety of goods and services.

Front

The government considers a $4,000 tax on cars that get fewer than 25 mpg. Cars above 25 mpg have no tax. Which goals are gained and lost?

Back

Efficiency (benefit) and Freedom (opportunity cost)