Which of the following is an accurate statement concerning producers and consumers in the U.S. market economy? (Points: 1)
Anti-trust laws prevent consumers from being producers
Consumers are usually individuals or families and therefore not producers of goods or services
Because switching from consumer to producer is difficult and costly, it is rarely attempted
The producer of one good or service may be a consumer of another good or service
7. In a realistic market economy such as the United States, the government ______________________. (Points: 1)
intervenes only in extraordinary circumstances at the request of the World Bank
does nothing to interfere with the market
allows market forces to regulate the market for the most part, but intervenes for public good and in cases of market failure
manages everything in the market to prevent major market swings
8. During the Great Depression and from the 1970’s to the present time, the United States _____________________. (Points: 1)
has maintained a careful balance between income and expenditures
has spent more than it has taken in
has maintained a small, but important surplus
has swung repeatedly from surplus to deficit
9. The term “Gold Standard†means: (Points: 1)
Gold held in reserve equals the value of paper money in circulation
The price per ounce of gold is fixed by the government
Gold is the medium of exchange for goods and services
The purity of gold is held at 24 karats
10. The Central Bank is the financial institution (Points: 1)
to which all local banks report
at which the government stores its gold reserves
that decides monetary policy
is located at the geographic center of the continental United States
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