Unit 2 - Economics: Questions
Which of the following are rights of consumers in a free enterprise system? Select all that apply.
the right to own private property benefits of competition the right to choose
The Clayton Anti-Trust Act differed from the 1890 law in that it ____________.
was stronger and more enforced than the previous law due to the creation of the FTC
The importance of the Sherman Anti-Trust Act of 1890 is that it ____________.
was the first move of the government to regulate the economy
In which amendment can one find the "Takings Clause?"
Fifth Amendment
What differentiates a credit union from other financial institutions?
It only serves a certain group of people.
What was the impact of the gold and silver discovered by the Spanish and Portuguese in the Americas?
The large amount of gold and silver discovered by the Spanish and Portuguese in the Americas devalued the worth of the world supply of both metals.
In what part of the world could one find the first evidence of banking-like institutions?
Mesopotamia
What was the major obstacle that prevented the spread of banking in Europe during the 1200s to 1400s?
Roman Catholic Church
Match the following terms with the correct definitions. credit union medium of exchange fiat money e-cash unit of account
credit union - a bank owned by a particular group of people medium of exchange - something accepted in return for a good or service fiat money - money established by law; government approved e-cash - an electronic version of paper money unit of account - an agreed-upon scale of worth for goods
What is the major obstacle to Americans owning their own businesses?
age
Which of the following would NOT be an example of money?
an American Express card
According to the text, the next potential form of money could be __________.
e-money
The key to the market economy is that basic economic decisions are made by _______.
consumers
The money that is established by law to be money is called _________.
fiat money
When did the US government begin its involvement in the economy?
late 1800s
The National Football League enjoys a _______.
legal monopoly
The importance of the right to own private property is the ability to ___________.
make a profit in the sale or operation of private property
Which of the following is a function that money serves? Select all that apply.
medium of exchange unit of account store of value
The absence of any competition within a particular market of a good or service is a(n) ______________.
monopoly
When one company, due to some advantage, can offer a product at a lower price than other companies, it has formed a ________.
natural monopoly
The free enterprise system is based primarily upon Americans' right to __________.
own their own businesses
The "Takings Clause" allows the government to practice eminent domain by taking away private property provided that the government _______.
pays a fair price for the property
In a market or free enterprise economy, competition ensures _______. Select all that apply.
reasonable prices consumer choice
Which of the following would be an example of a thrift institution? Select all that apply.
saving and loans associations savings bank credit union
What event led to a more centralized banking system in the new United States?
the formation of a new unified country
In October 2010, the amount of currency held by individuals and companies was $987.1 billion; checkable deposits owned by individuals and companies were $567.3 billion; money market funds were $1,045.4 billion (or 1.0 trillion); savings deposits were $562.3 billion; time deposits were $324.2 billion. What was the M1 amount in October 2010?
$1,554.4 billion
What is a start-up?
A new business created by an entrepreneur.
In order to go into business as a commercial bank, you need verification from the _____________.
Department of the Treasury
What was the importance of the Supreme Court case Kelo v. New London (2005)?
It gave the government more power in invoking eminent domain.
Which of the following would be considered currency?
coins
What is NOT a component of the free enterprise system?
government ownership of industry
Which of the following government actions may infringe upon a consumer's rights? Select all that apply.
government regulation eminent domain
What role do credit and debit cards play when making a purchase?
identification cards for the approval of purchases
A means of payment is a way of ____________.
settling a debt
