3.07 Unit Test: American Free Enterprise and U.S. Government Involvement. Econ

Which of the following redistribution programs provide medical assistance to those who are disadvantaged or unemployed?

Medicaid

Which of the following redistribution programs can significantly increase the level of output of a nation by improving the human capital and efficiency of the workforce?

Education

Charles Edgar Duryea and his brother are credited with creating which of the following products?

gasoline-powered automobile

Which of the following is NOT a principle of the American Free Enterprise System?

federal regulation

The government promotes entrepreneurship because new products will stimulate the economy and create new jobs.

True

Which of the following entrepreneurs is credited with fabricating a revolutionary invention that made it possible for businesses to make decisions much more quickly?

Bell

Congress is responsible for creating the federal budget.

False

If the President vetoes the national budget bills, the process starts again from the beginning.

False

The Federal Advisory Council of the Federal Reserve decides if any changes to the money supply are needed.

False

The Federal Reserve can decrease the money supply by buying bonds.

False

When an inventor gets a patent for his work, it means that the government will buy a specific amount of the new invention.

False

Which of the following is a characteristic of a public good?

The cost to build it is the same, regardless of how many people use it.

The Federal Reserve can increase the money supply by buying bonds.

True

The Federal Reserve conducts check-clearing services for all banks in the country.

True

The Federal Reserve is governed by a seven-member panel known as the Board of Governors.

True

The government funds research to expand technological capabilities, which positively affects the economy.

True

Which of the following principles of the American Free Enterprise System means that consumers have a wide variety of choices when purchasing goods and services?

competition

Which of the following is NOT an example of a public good?

private college

Which of the following benefits of the American Free Enterprise System requires a great deal of government involvement?

protection

Which of the following benefits of the American Free Enterprise System allows producers to be very flexible?

responsive prices