American Government and Economy Review

What are the three main economic systems?

• oligarchy, theocracy, and monarchy

• feudalism, mercantilism, and barter

• anarchy, totalitarianism, and democracy

• capitalism, socialism, and communism

Which economic system is based on private ownership and competition?

• communism

• socialism

• feudalism

• capitalism

What is a monopoly?

• A monopoly is a market structure in which a single company has control over multiple products or services.

• A monopoly is a market structure in which a single company or entity has exclusive control over a particular product or service.

• A monopoly is a market structure in which multiple companies have control over a particular product or service.

• A monopoly is a market structure in which companies have equal control over a particular product or service.

What are the advantages of a market economy?

• Economic efficiency, competition, innovation, consumer choice, and individual freedom.

• Decreased individual freedom, lack of economic efficiency, limited innovation

• Inefficient allocation of resources, lack of competition, restricted consumer choice

• Government control, limited choices, lack of innovation

What are the disadvantages of a market economy?

• Limited consumer choice, lack of social safety nets, unequal distribution of resources

• Income inequality, lack of government intervention, potential for monopolies and market failures, economic instability

How do monopolies impact competition?

• Monopolies promote competition

• Monopolies have no impact on competition

• Monopolies reduce competition

• Monopolies increase competition

What is the purpose of taxes in a government?

• To discourage economic growth.

• To increase the national debt.

• To generate revenue for public services and programs.

• To fund political campaigns.

What are the different types of taxes?

• inheritance tax

• income tax, sales tax, property tax, corporate tax, excise tax

• capital gains tax

• value-added tax

How are taxes used to fund government programs?

• Taxes are used to fund private businesses instead of government programs.

• Taxes are collected from government programs and used to fund individuals and businesses.

• Taxes are not used to fund government programs, but are instead used for personal expenses.

• Taxes are collected from individuals and businesses and used to fund government programs.

What is the role of government in regulating the economy?

• The role of government in regulating the economy is to control all aspects of the economy and eliminate free market competition.

• The role of government in regulating the economy is to prioritize the interests of large corporations over small businesses.

• The role of government in regulating the economy is to completely withdraw and let the market self-regulate.

• The role of government in regulating the economy is to create and enforce policies and regulations that promote stability, growth, and fairness in the economy.