Question 1
In the United States, the U.S. government has six major economic functions. Which of the following is NOT one of the ways they provide public goods and services?
A.national defense
B.public education
C.roadways
D.higher tax rates for the rich
Question 2
In the United States, the U.S. government has six major economic functions. Which of the following is an example of correcting for externalities?
A.when costs or benefits spill over to 3rd parties
B.when the government taxes to decrease negative externalities (like pollution)
C.when the government taxes to increase positive externalities (like education)
D.all of the above are examples
Question 3
In which of these economies does change occur slowly, if at all, because families make the day to day decisions since they own the resources?
A.market
B.command
C.traditional
D.mixed
Question 4
Some goods are distributed based on who has the ability to pay for them, others are distributed:
A.on the basis of need
B.on the basis of education
C.based on how much the person produced
D.Both A and C
Question 5
Which of these types of economies is the one where the private individuals make their own decisions about what to produce?
A.market
B.command
C.traditional
D.mixed