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Economic Systems and Daily Life Answers

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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.
4

Critics of the wealth gap might argue that

e
economic growth will likely decline over time.
t
the upper classes cannot help create new jobs.
t
the wealthy become unable to make investments.
b
buying power exceeds the supply from producers.
5

What is one possible effect of high unemployment in a mixed market economy?

T
The government will intervene to appoint new jobs to workers.
A
A lack of income will weaken the buying power for many people.
N
New government-run farms and factories will open to provide work.
T
The wealth gap between the upper and lower classes will decrease.
6

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.
7

Private property is land or goods

o
owned by the government.
o
owned by an individual.
u
used by state officials.
u
used for taxation.
8

How does a high unemployment rate affect the economy?

A
A high unemployment rate has no effect.
A
A high unemployment rate has little effect.
A
A high unemployment rate has a very positive effect.
A
A high unemployment rate has a very negative effect.
9

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

a
a command economy.
u
unemployment.
p
private property.
t
the wealth gap.

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