36. Government Involvement Question Preview (ID: 50828)


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What is the main difference between free market and command economies?
a) government involvement
b) money
c) banks
d) opportunity cost

Which is NOT an example of government involvement in the economy?
a)
b) Civil Lawsuits
c) contracts
d) FDA and EPA

In a mixed economy, _______ courts can be used to settle economic disagreements between two parties.
a) criminal courts
b) civil courts
c) kangaroo courts
d) congress

Which is NOT an example of a government agency protecting citizens in the economy.
a) Food and Drug Administration (FDA)tests and makes sure that drugs are safe
b) Food and Drug Administration (FDA) requires nutrition labels on food packaging.
c) Environmental Protection Agency (EPA) makes sure that companies do not pollute
d) Department of Education requires end of year testing

Which is NOT an example of a government agency protecting citizens in the economy.
a) FCC regulates TV shwos
b) FTC makes sure that businesses are fair
c) FBI arrests murders
d) EPA regulates business and their interaction with the environment

Which is not a result of competition?
a) higher prices
b) lower prices
c) better quality
d) more choice

If you run a burger restaurant and new burger restaurant opens up, which would NOT be a good way to compete with them?
a) Lower prices
b) make better quality burgers
c) raise prices
d) innovate or create new recipes

How does the government encourage competition?
a) offer new businesses loans
b) burdensome FDA regulation
c) burdensome EPA regulation
d) zoning restrictions

Global trade lowers the prices of good by increasing supply. This is good for consumers and bad for producers.
a) True
b) False
c)
d)

Global trade lowers the prices of good by increasing supply. This is good for _______ and bad for _____________.
a) producers, consumers
b) consumers, producers
c) consumers, government
d) government, consumers

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