The Role Of Economic Systems

The best example of a private good is ___________.

• Talladega National Forest

• Public beaches in south Alabama

• NASA

• Alabama and Auburn football tickets

Which of the following is NOT a necessary function of government?

• Providing a legal system to enforce laws and protect property rights

• Maintaining competition by regulating monopolies

• Promoting economic growth at the expense of employment and price stability

• Providing goods that private companies cannot

A government that focuses on an increase in prices throughout the economy is most concerned with which social goal?

• Income security

• Equitable distribution of income

• Price stability

• Economic freedom

The best example of a public good is ___________.

• 3D televisions

• Nike shoes

• flood control

• haircuts

When balancing the national budget, it would appear as __________.

• all decisions have higher benefits than costs

• balancing the benefits and costs is easy since the costs to different groups are so equal

• the process is not easy since there are many tradeoffs between benefits and costs

• the costs of a decision always outweigh the benefits since they are spending tax dollars

When a country is producing as many goods and services as possible with the resources available it has achieved which social goal?

• Income security

• Economic efficiency

• Equitable distribution of income

• Economic freedom

Remember, no society can achieve all its goals at the same time. To achieve an equitable distribution of income, a country’s trade-off would be losing __________.

• full employment

• price stability

• income security

• economic freedom

Which federal government program is best for helping our nation achieve the goal of economic security?

• Social Security

• NASA

• income taxes

• Medicare

Which one of the nations listed below has an economy that can best be described as a command economy with limited free market opportunities?

• China

• The United States

• South Korea

• Germany

What three questions must a society answer when it is trying to determine what type of economic system it wants?

• When to produce, what to produce, why to produce.

• What to produce, how to produce, and for whom to produce?

• When to produce, how to produce, and how much to produce

• What seasons to produce, who gets the goods and services produced, and how the goods and services will be produced.