2-Why doesn't the United States export crude oil to other nations?
A.
The United States does not produce enough petroleum to meet the nation’s energy needs, so the export of crude oil has been banned.
B.
Oil-rich nations refuse to enter into trade agreements that would allow them to import crude oil from the United States.
C.
The tariffs imposed on the export of crude oil by the federal government are too high for most American petroleum companies.
D.
The cost of crude oil imported from the United States to nations around the world is too high for most countries to pay
3-How is a mixed economy the same as a purely free market economy, and how is it different?
A.
In both systems, individuals own businesses and resources, but the government has some involvement in a mixed economy.
B.
In both systems, individuals own businesses and resources, but the government has no involvement in a mixed economy.
C.
In both systems, the state mostly owns businesses and resources, but the government has complete control in a mixed economy.
D.
In both systems, the state mostly owns businesses and resources, but the government has limited control in a mixed economy.
4-Where is a free market most likely to exist?
A.
in a socialist country
B.
in a communist state
C.
in a democratic republic
D.
in an absolute monarch
5-A government borrowing money to spend on programs designed to create jobs in order to widen the tax base is known as what?
A.
demand-side economics
B.
supply-side economics
C.
communist economics
D.
capitalist economics
2- The correct answer is A. The United States does not export crude oil to other nations because the country does not produce enough petroleum to meet its own energy needs. This means that exporting crude oil would leave the United States without enough supply to fulfill its domestic energy requirements. The current ban on crude oil exports helps ensure that the country has an adequate supply of petroleum.
3- The correct answer is A. In both a mixed economy and a purely free market economy, individuals own businesses and resources. However, in a mixed economy, the government also has some level of involvement. This involvement can include regulations, taxes, subsidies, and social welfare programs. In a purely free market economy, on the other hand, the government has little to no involvement in economic activities. It is important to note that the degree of government involvement can vary, and different countries may have different levels of economic freedom.
4- The correct answer is C. A free market is most likely to exist in a democratic republic. In a democratic republic, citizens have the ability to elect representatives who make decisions on their behalf. This system of government often promotes economic freedom and allows for competition among businesses. While socialist and communist systems tend to have more government control over the economy, and an absolute monarch has complete authority, a democratic republic typically offers a suitable environment for a free market to exist.
5- The correct answer is A. When a government borrows money to spend on programs aimed at creating jobs in order to widen the tax base, it is known as demand-side economics. Demand-side economics focuses on stimulating consumer demand through government spending, with the belief that increased consumption will lead to economic growth. This approach is often used during times of economic downturn or recession, as it aims to boost employment and overall economic activity. Supply-side economics, on the other hand, focuses on reducing taxes and regulations to encourage investment and production. Communist economics and capitalist economics refer to broader economic systems, rather than specific government borrowing strategies.