AnswersLVA-Economics SPRINGEconomic Systems and Daily Life

Competition and Free Enterprise Answers

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Ivan works for an automobile factory that exports cars around the world. The government manages the factory, and he lives in housing provided by the city. Ivan most likely lives in

A
a closed economy with limited government regulation.
B
a pure market economy with no government regulation.
C
a command economy with heavy government regulation.
D
a mixed market economy with some government regulation.
2
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In a mixed market economy, property owned by an individual

A
can be used by all citizens.
B
can be run by a city or state.
C
can help promote personal wealth.
D
can be used by government workers.
3

What is one counter-argument to the premise that the wealth gap is a serious problem which needs to be addressed?

A
The lower classes have the opportunity to invest.
B
Poor people can easily move into the middle class.
C
Investments by the upper class create lower-class jobs.
D
Buying power sharply increases for the working class.
4

In a mixed market economy, a fire breaks out in a sneaker factory. The repair work most likely will be paid by

A
the government group that runs the factory.
B
the state agency that operates the factory.
C
the city official who manages the factory.
D
the private citizen who owns the factory.
5

The difference in income between the richest and poorest citizens is called

A
a command economy.
B
unemployment.
C
private property.
D
the wealth gap.

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