Primavera Economics Unit 2 Exam 2023 Already Passed

Primavera Economics Unit 2 Exam 2023 Already Passed What is the main advantage of a command economy? Everyone's basic needs are met. Which accurately describes a principle argued by Adam Smith to drive a free market economy? Adam Smith argued for a laissez-faire economy that is free of government intervention. What are roles of the government in a mixed market economy? (Select all that apply.) It helps to prevent monopolies, In enforces laws against false advertising, It helps to ensure that prices are fair. Which action by the government would promote competition among firms? NOT - Repealing antitrust laws enacted by the Senate. Read the sentence. The three basic economic questions everyone must answer are [blank]. Which most accurately completes the sentence? What to produce, how to produce, and for whom to produce. Which is a disadvantage of a free market economy? It does not provide public goods. Which accurately describes advantages of a sole protrietorship? .5 - The owner of a sole proprietorship has the freedom to make all business decisions. What is the purpose of the Tennessee Valley Authority? (Select all that apply.) .67 - It generates and provides inexpensive hydroelectric power to the Tennessee Valley, It develops agriculture and forest land in the Tennessee Valley. Which accurately describes events of the Industrial Revolution and subsequent emergence of capitalism? The Industrial Revolution created economic opportunities for the middle class (bourgeoisie) and the desire for profits without government interference. How do government benefit payments, such as social security and veteran benefits, help the economy? (Select all that apply.) .67 - They are a source of revenue that people use to consume goods and services, They offer a safety net for people who may be struggling for some reason. What do traditional and command economies have in common? A focus on the community rather than the individual. In which situation is a consumer exercising consumer sovereignty? A person does not like the food served at a restaurant and chooses another restaurant. Which are characteristics of macroeconomics? (Select all that apply.) .75 - It deals with the overall condition of the economy, It measures exports and imports for international trade, It demographically measures the number of households demanding products or services. What is the biggest disadvantage to setting up a sole proprietorship? The personal liability. Which accurately describes advantages of a corporate business structure? (Select all that apply.) .5 - A corporate business structure allows owners to raise capital by selling shares of stock, The business becomes a legal entity separate from the person or people who set it up, Owners of a corporation retain complete control of day-to-day business operations. What does the FDIC do when a bank fails? (Select all that apply.) .75 - It notifies depositors if their bank has been sold, It provides advice to consumers on choosing a new bank, It sells off a bank's remaining assets to settle any debts. Why are many goods and services produced in a mixed market economy? NOT - Government regulations mandate producers to provide a selection of goods or services. Why do business owners have to answer the three economic questions? The answers determine the best way to use their resources. Which are fundamental principles of economics? (Select all that apply.) How will it be produced?, How will it be distributed? Which best describes Adam Smith's view on economics and government involvement in business? He believed in a laissez-faire policy in which the government does not interfere in commerce. Which accurately describes a downside of the Tennessee Valley Authority Act? Independent electric companies went out of business due to lower government rates. What is the main advantage of a market economy? NOT - income gaps between the rich and poor are minimized. When adjustable mortgage rates began to increase, what was the results? (Select all that apply.) Banks tightened credit restrictions again, Thousands of homes were foreclosed on. Why is scarcity a significant problem? NOT - It leads to opportunity cost. Read the sentence. A person visits the grocery store to buy the materials to make and sell fudge door-to-door. What factors of production are being used? All of the factors: land, labor, and capital. Which accurately describes disadvantages of a corporate business structure? (Select all that apply.) Setting up a corporation is complex and may require the advice of an attorney or accountant, A corporate business structure has a lot more regulations, or laws, compared to other structures. Which is true regarding consumer sovereignty? NOT - It is only present when there is perfect competition. Which government entities play a direct role in the US economy and compete with private businesses? (Select all that apply.) .17 - Federal Deposit Insurance Corporation (FDIC), Department of Homeland Security (DHS). How do business partners share liability? They share all liability jointly. What is economic incentive in a free enterprise economy? Businesses sell goods and services and people take jobs for income.