Economics Part II Honors

What is the central bank of the United States called?

• Bank of America

• Federal Reserve

• U.S. Treasury

• American Central Bank

What happens to borrowing when the Federal Reserve raises the rate?

• Increases

• Decreases

• Stays the same

• Stops entirely

Which amendment allows the government to tax your income?

• First Amendment

• Tenth Amendment

• Sixteenth Amendment

• Twentieth Amendment

Which term best describes the United States economy?

• Traditional

• Command

• Mixed

• Free-enterprise

What is the name for a system in which only private citizens own the factors of production?

• Free market economy

• Command economy

• Mixed economy

• Traditional economy

What is the name for a system in which only the government owns the factors of production?

• Capitalism

• Limited

• Entrepreneurial

• Command

Which of the following does NOT describe the U.S. economy?

• Businesses make a profit

• Mixed economy

• Free market

• Government runs everything

What does technology do to the cost of production?

• Raises it

• Eliminates it

• Does nothing

• Lowers it

What is a monopoly?

• An old board game

• Where only one company provides the good/service

• A market where there is lots of competition

• A one house legislative body

Why do states and nations trade?

• To visit other countries

• To raise prices

• To eliminate competition

• To sell goods and services to other countries