1) If the U.S. government were to take control of all enterprises that affect the social welfare of its citizens, a likely outcome would be an increase in _______.

Taxes

Monetary Policy

Supply

Capitalism

2) Recently, the Swedish government has had to cut back on some of the social services it provides its citizens, especially those that benefit older adults. One issue is that the aging population is much larger than the younger working population. The younger workers help fund those social services through _______.

supply and demand

monetary policy

taxes

budget surpluses

3) Despite the fact that the United States espouses capitalist economic policies, the government controls certain enterprises, such as Medicare and Social Security. This is an example of the trend toward _______ systems.

pure competition

mixed market

communist

free market

4) Boun is a farmer in Laos, a landlocked country in Asia that has a single-party government that controls all means of production. This means that even though Laotian farmers like Boun may have a high demand for products like commercial chicken feed, the government will decide which products get made. Laos is an example of a __________ economy.

communist

mixed market

monopolistic competitive

socialist

5) Joon is a successful entrepreneur who lives in Denmark. He started his business in 2010 when the tax rates were higher. He considered moving his business to a country with more favorable tax rates, but then Denmark lowered its corporate tax rate to encourage domestic investment. Joon is encouraged by this move towards a more _______ economic system.

socialist

communist

pure planned

mixed market

6) Apple sells its popular products, including the iPhone and Apple Watch, around the globe. Currently, most iPhones are assembled in Shenzhen, China. When Apple purchases these finished iPhones from the Chinese factories, which country can count those revenues toward their gross domestic product (GDP)?

Both the United States and China

The United States

China

Neither the United States nor China