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Economics A

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

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