Government and the Economy

What is the primary basis of the economic system in the United States?

• Government control

• Market-based

• Command-based

• Socialism

Which country is mentioned in the text as having the greatest government control over its economy?

• United States

• China

• Canada

• Germany

How are decisions made in a market economy?

• By the central government

• By a few wealthy individuals

• By all the people in the economy

• By international organizations

How are decisions made in a command economy?

• By the central government

• By a few wealthy individuals

• By all the people in the economy

• By international organizations

What are externalities?

• Government regulations

• Unintended side effects that have an influence on third parties

• Market prices

• Business profits

How is GDP per capita calculated?

• Total GDP divided by the number of businesses

• Total GDP divided by the country's population

• Total GDP divided by the number of government policies

• Total GDP divided by the number of industries

Who makes major economic decisions in a command economy?

• Private citizens

• Central government

• Business owners

• International organizations

What is socialism?

• The belief that the means of production should be owned and controlled by private individuals

• The belief that the means of production should be owned and controlled by the government

• The belief that the means of production should be owned and controlled by foreign investors

• The belief that the means of production should be owned and controlled by large corporations

Who predicted a violent revolution in industrialized nations?

• Adam Smith

• Karl Marx

• John Maynard Keynes

• Milton Friedman

According to Karl Marx, what are the two classes in industrialized nations?

• Bourgeoisie and Proletariat

• Capitalists and Socialists

• Workers and Managers

• Government and Citizens