Civics Final Review Part 6

What is an equilibrium price?

• When supply exceeds demand

• When demand exceeds supply

• When supply and demand points meet

• When the market is regulated by the government

What is a command economy?

• Government makes all economic decisions.

• Market forces control the economy.

• Businesses make all economic decisions.

• Consumers control the economic decisions.

Which country has recently begun to adopt a free market system?

• India

• Russia

• China

• Brazil

What is a characteristic of a mixed economy?

• No government intervention

• Total government control

• Business freedom with some government regulations

• Market controlled solely by international companies

What is an advantage of having a mixed economy over a pure market economy?

• Less business freedom

• Higher taxes

• People have access to publicly funded services

• Increased economic inequality

What is seasonal unemployment?

• Unemployment due to economic recession

• Unemployment when industries shut down permanently

• Unemployment when workers are hired and laid off according to seasons

• Unemployment due to technological changes

How does education typically affect income?

• Higher education leads to lower income

• No impact on income

• Less education is more likely to be a low-wage earner

• More education guarantees wealth

What does a personal budget help an individual do?

• Increase their debts

• Evaluate their own earnings and expenses

• Ignore financial planning

• Focus only on entertainment expenses

What is required for a secured loan that is not needed for an unsecured loan?

• Higher interest rates

• Proof of income

• Collateral

• Co-signer

Besides loans, how can banks lend money?

• Issuing government bonds

• Credit Cards

• Direct cash payments to individuals

• Stock investments