Economics A – Flashcards
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Why do Americans want the government to intervene in their free enterprise economy?
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To protect the public Interest
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what is the purpose of free enterprise?
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To give consumers the freedom of choice
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Business cycles occur in free enterprise systems because
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economic decisions about factors such as prices, production, and consumption are determined by the market
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the government encourages an increased level of productivity by
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funding research and development projects at many levels
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Policymakers pursue all of the following goals to stabilize the economy except
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stable productivity
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what part of the economy finances public goods
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public sector
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how do public goods limit a free market economy
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they allow the government, and not consumers, to make some economic decisions
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various federal, state and local government programs help to raise people's standard of living because
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certain groups of people have fewer opportunities to be productive
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all of the following programs provide direct cash transfers except
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Medicaid
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the most common in-kind benefits are
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good giveaways, food stamps, subsidized housing, and legal aid
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education programs make the economy more productive by
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adding to human capital and labor productivity
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health insurance for the elderly, the poor and the disabled is provided by
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medicare and the medicaid under the social security program
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which of the following is not a reason for the government to provide a good or service as a public good
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increasing the number of consumers would increase the cost of a private provider
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if a teacher decides to have her students volunteer at a community nursing home after school, which of the following would be a negative externality
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a student would be unable to work at her part-time job on that afternoon
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what is critical in determining whether something is produced as a public good
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whether the benefits to society are greater than the total cost
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why has america been referred to as the "land of opportunity"
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it provides anyone from any background the possibility of success through hard work
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what is considered a negative effect of government regulations
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all of the above
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in what two ways does the Bill of Rights protect and guarantee individuals freedom to engage in business activities
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recognizes property rights and limits on taxation's
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the federal government monitors and regulates american banks and other financial institutions
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to shield money from the damaging effects of economic downturns
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improved technology helps create a higher standard of living for future generations by
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providing additional goods and services
