Economic Test 2

Which of the following is an economy where supply and demand determine production (that is, business runs itself without government interference) and there are no safety nets for the poor?

• Traditional Economy
• Command Economy
• Market Economy
• Mixed Economy

Which of the following is an economy where the government controls production (business and consumers have little say in which goods/services are sold)?

• Traditional Economy
• Command Economy
• Market Economy
• Mixed Economy

Which of the following is an economy where supply and demand determine production (that is, business runs itself without government interference) and there are safety nets for the poor?

• Traditional Ecomony
• Command Economy
• Market Economy
• Mixed Economy

Which of the following is an economy that favors bartering (exchanging goods for goods, services for services) instead of money?

• Traditional Economy
• Command Economy 
• Market Economy
• Mixed Economy

In which example would you find a type of business where a group of people have ownership, but are authorized by law to act as a single person in business matters, such as buying and trading stocks.

• Sole Proprietorship
• Partnership
• Corporation
• Franchise

In which example would you find a type of business where a single owner runs and manages the business?

• Sole Proprietorship
• Partnership
• Corporation
• Franchise

In which example would you find a type of business where two or three people run a business and have equal input on decision-making?

• Sole Proprietorship
• Partnership
• Corporation
• Franchise

How does the Federal Deposit Insurance Commission (FDIC) help Americans who deposit money within banks?

• It is a federal agency within the legislative branch that manages the federal budget.
• It is a federal agency within the executive branch that prints and destroys money.
• It is a federal agency that ensure and protects bank deposits up to $180,000.
• It is a 12-member board that is responsible for raising and lowering interest rates.

What is the Federal Reserve and what does it do?

• It is a federal agency within the legislative branch that manages the federal budget.
• It is a federal agency within the executive branch that prints and destroys money.
• It is a federal agency that ensure and protects bank deposits up to $180,000.
• It is a 12-member board that is responsible for raising and lowering interest rates.

What are Interest Rates?

• A fee for borrowing money 
• A set value on currency
• A tax on imported goods
• A tax on goods/services