Unit 1 Quiz Personal and Family Finance

The Industrial Revolution, when machines began to assist in production, developed the capitalist economy because it allowed companies to mass produce different things without as much human effort.
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The Industrial Revolution, when machines began to assist in production, developed the capitalist economy because it allowed companies to mass produce different things without as much human effort.
True
What is the main characteristic of a laissez-faire economy?
a lack of regulations
Natural resources, such as minerals, plants, and raw materials, may be reduced or even completely used up as a result of market economies.
True
What is TRUE about the level of government involvement in the United States economy?
There is limited government influence.
Why might a business owner prefer to start a business in a laissez-faire economy?
because it does not include things like taxes, tariffs, or any type of regulation
Your favorite Swiss chocolate costs the equivalent of $10 in Switzerland. You ask your local chocolate shop to order the chocolate for you. The shop owner tells you it will cost $20. He tells you the shipping is free and that he is making no profit from this sale. What is the MOST likely reason that the cost is double what it is in Switzerland?
There is a tariff that must be paid on imported Swiss chocolate.
Tariffs are used to encourage global trade between two countries.
False
In a market economy, if the supply is low and demand is high, prices should drop.
False
Some of the earliest examples of economies involved bartering. What is TRUE about a bartering system?
It allows people to exchange goods without using money or any other type of financial item.
Economic systems are incredibly complex. What is TRUE statement about economic systems?
Ancient humans engaged in early economics by trading and selling of goods.
In a market economy, competition is a crucial requirement. What is one benefit to fostering competition in an economic system?It gives consumers more choices in the quality and price for things they want to buy.The Babylonians in Sumer used what as a monetary commodity?ShekelImagine that there are currently three major cell phone service providers available in the United States. The largest one has enough money to buy out the other two companies and make one giant company. What is MOST likely to happen if the largest company attempts to buy out the other two companies?The new, large company can control all prices and services provided.The United States government sometimes has to interfere with the economy. Why would the government initiate an antitrust suit against a company?to ensure companies do not monopolize any particular realm of businessIn Croatia, there is only one company that provides all of the telephone services for the entire country. What is this called?monopoly