Chapter+3+Assessment

Pg. 72 #1-7, 9-12, 13-16 (pick one) 1.) Acid rain is an example of an **externality**. 2.) The tradition of **open opportunity** allows everyone to compete in the free market. 3.) The right of **voluntary exchange** allows people to decide what agreements they want to enter into. 4.) Someone who benefits from a good without paying for it is an example of a **public good**. 5.) Food stamps are an example of a **cash transfer.** 6.) We can use figures on **gross domestic products** to measure economic growth. 7.) Study of the behavior of the entire U.S. economy is an example of **macroeconomics**. 9.) How does the government support free enterprise and protect public interest? It protects peoples rights an Describe and evaluate the government rules and regulations described in this chapter. 10.) Explain the basic principles of free enterprise in your words. You can make your own business decisions without interference from the government. 11.) Why does the U.S. government track and influence business cycles. They track and influence business cycles so that they can make more money 12.) Explain why each of the following is either a cash transfer or an in-kind payment.
 * a.)** unemployment insurance: It's a cash transfer because it is not for free
 * b.)** Social security: Cash transfer
 * c.)** Food Stamps: In-kind payment because it is free or greatly reduced in price