Government and Economics Questions

Which of the following choices accurately describe a market economy?

• Private companies produce products and compete with one another for your business

• The government owns most businesses so there is little or no competition

• Private companies produce products, but there is no competition between those private companies

What is the benefit of having companies compete with one another?

• Your choices are limited

• Lower price and better service

• If there is competition then the government can regulate those businesses

Which of the following would be a negative consequence of having a command economy?

• There would be a great deal of competition between businesses

• The cost of a product or a service could be extremely low

• There would only be one option for a product or service and one set price

According to the reading, which of the following is a characteristic of a "true free market"?

• High prices for all goods and services

• No government interference at all

• No private property

"A market economy in which the government owns some property, offers some kinds of goods and services, and makes some rules that affect how businesses can compete". This statement describes which type of economy?

• Command economy

• Traditional economy

• Mixed economy

When one company controls an entire industry without any competition, this is known as...

• An oligarchy

• A matriarchy

• A monopoly

Monopolies are...

• Legal

• Illegal

What is one of the main purposes of the Federal Trade Commission (FTC)?

• To stop companies from competing unfairly

• To stop businesses from selling illegal goods

• To encourage the growth of businesses in the United States

What is the purpose of a tariff?

• Tariffs encourage citizens to buy products made in their own country.

• Tariffs are used to punish other countries

• Tariffs are used to encourage trade between two countries

Besides the Federal Trade Commission (FTC), what is one other government organization that attempts to protect consumers?

• Federal Aviation Board

• Federal Arboretum Association

• Federal Communications Commission