Econ Most Missed

In what way does the event of the headline affect the circular flow model?

• Incomes for households and firms would increase.

• Firms and households would incur higher expenditures.

• Government expenditures and incomes would be offset.

• Expenditures for households would decrease, but not for firms.

Which characteristic of the U.S. free enterprise system creates the incentive to work, save, and invest?

• Social Security system

• Voluntary exchanges

• Private property ownership

• Consumer sovereignty

One result of competition in a free enterprise system is —

• fewer consumer choices

• lower prices for products

• steady wages and incomes

• improved safety conditions

One of the benefits of the U.S. free enterprise system is the —

• amount of choices for consumers

• guaranteed returns on investments

• lack of union participation by workers

• equal distribution of goods and services

Which of the following is most characteristic of the U.S. free enterprise system?

• Government price controls

• Nationalization of energy companies

• Markets that respond to consumer demand

• Public ownership of the factors of production

Based on the information on the table, which economic condition is characteristic of all three nations?

• Low GDP per capita

• High levels of inflation

• Low inflationary levels

• High levels of unemployment

An expansionary period in the business cycle is distinguished by —

• high inflation

• declining sales

• fewer excise taxes

• low unemployment

In the U.S. free enterprise system one of the primary roles of the government is to —

• employ a majority of the workforce

• guarantee that investors profits are secure

• ensure the safety of products through regulation

• provide new sources of funding for technology start ups

The Federal Reserve Act of 1913 created a banking system in the United States with the responsibility of —

• collecting of federal income taxes

• managing of interstate commerce

• enforcing of the Sherman Anti-trust legislation

• regulating of monetary policy in the United States

The Federal Reserve System designed in the manner described above resulted in the creation of—

• reserve bank satellite locations

• a decentralized system of banks

• new methods for printing money

• one large depository for U.S. currency