Econ Unit 4 Pre-Test (Business Organizations/Economic Systems)

The purpose of government in a command economy is to

• ensure the availability of consumer products
• encourage entrepreneurs
• make major economicdecisions
• promote economic freedom

An example of a market economy is

• the Inuit
• the former Soviet Union
• the U.S.
• North Korea

Which of the following is NOT considered an economic and social goal?

• economic efficiency
• economic growth
• price stability
• entrepreneurship

Which group of people ultimately determines the products a free enterprise economy produces?

• Congress
• property owners
• local government
• consumers

The United States can best be described as having a

• modified private enterprise system.
• traditional system
• command economy
• pure free enterprise system.

All of the following are characteristics of a command economy EXCEPT

• it can change direction drastically in a brief period of time
• there is much uncertainty
• it is not designed to meet the wants of consumers
• it provides workers with few incentives to work hard

The minimum wage is an example of a federal law that supports

• economic growth
• economic equity
• full employment
• economic efficiency

Economic____________________ is an economic goal that is based on a sense of fairness.

• price stability
• equity
• freedom
• growth

The concept of voluntary exchange means

• that no money was exchanged.
• people freely and willingly engage in market transactions.
• only workers will benefit from the exchange.
• neither buyer nor seller has made a profit.

The government's role in a mixed economy is that it is the

• definer of goals
• central planner.
• regulator charged with preserving competition.
• coordinator of basic economic activity.