Econ 1st Sem Exam 24 Part 2

What is a key factor of American Free Enterprise?

• Centralized planning
• Government ownership
• Self Interest
• Collectivism

According to the U.S. Constitution, what protects private property from being taken without due process?

• 1st Amendment
• 5th Amendment
• 10th Amendment
• 16th Amendment

What is one negative effect of government regulation?

• Encourages innovation
• Stifles competition
• Reduces government spending
• Increases consumer choice

What is the principle of consumer sovereignty?

• Consumers dictate what producers make
• Government decides what consumers can buy
• Producers control consumer choices
• Consumers have limited options

What does the term "eminent domain" refer to?

• Private ownership of resources
• Government seizure of property for public use without compensation
• Government taking property for public use with compensation
• Complete freedom from government intervention

What is one way the US government encourages economic growth and stability?

• Reducing employment opportunities
• Promoting a high employment rate
• Increasing prices drastically
• Restricting technological development

What is the business cycle?

• A period of constant economic decline
• A pattern of expansion and contraction in the economy
• A fixed rate of economic growth over the course of the year
• A non-changing employment rate measured over the course of a decade

Which economic measure represents a nation's well-being?

• Stock market index
• Gross domestic product
• Consumer Price Index
• Inflation rate

What does the government do to promote price stability?

• Encourage sudden drastic shifts in price
• Prevent sudden drastic shifts in price
• Allow prices to fluctuate wildly
• Ignore price changes

What is a public good?

• A private service funded by individual payments
• A shared good or service that it is inefficient to charge individually for
• A product that can be consumed by only one person at a time
• A service provided exclusively by private enterprises