Chapter 3 Test

Economic equity refers to...

• The concept of fairness in economics, particularly in regard to taxation or welfare economics.

• The idea of maximizing profits in a free market economy.

• The principle of supply and demand in economic systems.

• The study of economic growth and development.

Economic freedom is defined as...

• The ability to control one's own economic resources

• Government control over economic resources

• The absence of economic resources

• The restriction of economic activities

Full employment is a situation where:

• everyone has a job.

• there is no cyclical unemployment.

• the economy is in a recession.

• there is zero unemployment.

Economic security refers to ...

• A condition of having stable income or resources for a standard of living.

• A measure of a country's military strength.

• A type of insurance policy.

• A government program for unemployment benefits.

Economic growth is:

• an increase in the production of goods and services over a specific period

• a decrease in the unemployment rate

• a measure of inflation

• a reduction in the national debt

Economic stability refers to ...

• A condition with high inflation and low growth

• A condition with constant growth and low inflation

• A condition with fluctuating growth and high inflation

• A condition with no growth and high inflation

Fill in the blank: The ability of people to make their own economic decisions without interference from the government is known as _______.

• economic freedom

• government control

• market regulation

• state intervention

Fill in the blank: The fairness with which an economy distributes its resources and wealth is called _______.

• equity

• efficiency

• growth

• stability

Fill in the blank: The idea that the less fortunate members of society should get the economic support they need to live a decent life is known as _______.

• welfare

• capitalism

• monopoly

• inflation

Fill in the blank: A condition in which everyone who wants to work can find a job is referred to as _______.

• full employment

• unemployment

• underemployment

• job scarcity