1. What is the most important reason for having a government?

• To provide a leader to rule over it's people

• To provide a set of rules to help people cooperate

• To provide uniform system of education

• To provide an efficient system of transportation

Which of these types of government allows citizens to have the greatest amount of political influence?

• dictatorship

• direct democracy

• absolute monarchy

• oligarchy

Which of these is important to a successful democracy?

• discouraging criticism of elected officials

• ensuring that only the most capable citizens receive an education

• producing policies that address a variety of citizens’ concerns

Which of these forms of government is run by a small group of people deriving power from wealth, religion, or military?

• absolute monarchy

• oligarchy

• representative democracy

• dictatorship

Which of these is a characteristic of an authoritarian system of government?

• popular sovereignty

• equal protection under the law

• restrictions of personal freedoms

• majority rules with minority rights

What condition exists when society does not have all the resources to produce all the goods and services that everyone wants?

• capitalism

• entrepreneurism

• free enterprise system

• scarcity

Which of these is a characteristic of a free market economy?  

• land and factories are owned by the government.

• business decisions are controlled by the government.

• most economic decisions are based on custom and tradition.

• producers and consumers determine what to produce.

Which of these is most commonly a role  of the government in the United States economy?

• setting prices for goods and services

• requiring factories to produce certain goods

• determining where citizens may work

• establishing laws to ensure the safety of workers

Which of these best describes a mixed economy?

• To provide a leader to rule the people

• custom and precedent determine how materials are divided

• natural resources are owned and controlled by the government

• businesses are regulated by the government to protect the public’s interest.

A company decides to install more machines and lay off workers. Which economic question is being directly addressed?  

• how to produce

• what to produce

• for whom to produce

• how much to produce