US Government and the Economy

In this economic system the government will sometimes step in to make competition more fair.

• Command Economy

• Traditional Economy

• Mixed Economy

• Market Economy

Which describes a parliamentary democracy type of government?

• People vote directly for a leader.

• People vote for representatives who choose from among themselves a prime minister.

• People vote.

• One person is in control.

Which is the best definition of a Command economy?

• Decisions are made based on the prices set by buyers and sellers.

• Decisions are made based on the history of the country.

• Decisions are made by the government.

• None of the above.

How would a free market economy be described?

• An economy in which decisions are made by the government.

• The international exchange of goods.

• An economy based on supply and demand with little or no government control

• An economy that is communist

Canada charges special taxes on U.S. cheese and butter brought across the U.S.-Canadian border. What type of trade barrier is this?

• Embargo

• Tariff

• Quota

• Opportunity Cost

What does the government use taxes for?

• private goods and services

• public goods and services

• paying its own taxes

• increasing consumption

Which statement below does not describe why VA and the US trade with other nations?

• to make money off the other countries with fewer resources

• to obtain goods and services they cannot produce themselves

• to buy goods and services at a lower cost

• To create jobs

What is the primary role of the Federal Reserve in the United States?

• A) To print money

• B) To regulate the stock market

• C) To control inflation and manage the money supply

• D) To set tax rates

Which economic system is characterized by private ownership and free markets?

• A) Command Economy

• B) Mixed Economy

• C) Market Economy

• D) Traditional Economy

What is the purpose of antitrust laws in the United States?

• A) To promote monopolies

• B) To encourage competition and prevent monopolies

• C) To regulate international trade

• D) To control government spending