1: In a mixed capitalist economy… (select all that apply)
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2 points
The government controls the economy
The government creates policies to regulate the economy to make it fair
People own and control capital to make profits
The economy is complete laissez-faire

2: How do monopolies, which are when a single business is so successful that it becomes the only source of a product or service, harm capitalist economies?
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1 point
They prevent fair free enterprise, which stops competition between businesses to provide consumers better services and products
They do not, for businesses grouping together always helps the consumer
They do not, for they always follow the law of supply and demand
They are the result of too much government regulation that stalls the economy

3: What are the differences between fiscal and monetary policy?
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1 point
Fiscal policy is the ability to control the money supply and the availability of credit in the economy whereas monetary policy is the power to tax and spend
Monetary policy is the ability to control the money supply and the availability of credit in the economy whereas fiscal policy is the power to tax and spend
They are the same thing
The President has complete control over the nation’s monetary policy whereas the President has no control over the fiscal policy

4: How does the Federal government influence the US economy (select all that apply)?
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3 points
Through a variety of government agencies, such as the Federal Reserve System and the Securities and Exchange Commission, that seek to enforce fair policies and markets
By directly controlling the market
By providing tax cuts and deficit spending when necessary
By raising or lowering the discount rate