The UK & US Economic system

(Economy) Mixed economy

The mixed economy in the UK includes public and private sectors.

(Economy) Public sector

includes the state-run industries and public services, which now amount to under one-third of the economy.

(Economy) Private sectors

- consist of:

+ small businesses owned by individuals

+ companies whose shares are sold to the public through the Stock Exchange

+ large companies whose shares are not offered for sale to the public.

- crucial to the economy and generate 50% of new jobs.

- accounts for over two-thirds and will increase with further privatization

(Economy) GDP

Gross Domestic Product - the total market value of all final goods and services produced annually in an economy

(Economy) Budget deficit

the difference between government spending and the income it receives through taxation and other sources

(Economy) Privatization

- 1945-1980: state controlled

- 1980s:

+ conservative government gave more freedom to businessmen

+ many companies were privatized/denationalized => owners of state-owned companies became shareholders

+ local government authorities were encouraged to contract out public services to commercial organizations.

(Economy) Devaluation of the currency

- an official lowering of the value of a country's currency within a fixed exchange rate system

- boosted exports by making them cheaper on the world market

- raised the cost of imports and dissuaded people from buying foreign goods.

(Economy) Free enterprise

A system allows private business the freedom to operate for profit with minimum government interference and regulation.

(Economy) Laissez faire

policy that government should interfere as little as possible in the nation's economy.

(Economy) Self-interest

that which each firm, property owner, worker, and consumer believes is best for itself and seeks to obtain.

(Economy) Competition

the struggle among producers for the dollars of consumers

Britain's economic wealth in the 16-17th century mostly came from industrial revolution and technological advancement (TRUE/FALSE)

Britain's economic wealth in the 16-17th century mostly came from industrial revolution and technological advancement

False

The British government played a significant role in the economy from 1945 to 1979 through a policy of state intervention and nationalization of key industries (TRUE/FALSE)

The British government played a significant role in the economy from 1945 to 1979 through a policy of state intervention and nationalization of key industries

True

Which is true about the financial institutions in the UK?

A. They are important, but not essential to the economy

B. Public trust in them is declining, especially after the 2008 crisis

C. They are owned and managed by the government

B. Public trust in them is declining, especially after the 2008 crisis

Thatcherism emphasizes _____ of state-owned companies and industries (1 word)

privatization

Which is a current key driver of British GDP growth?

A. Agriculture

B. Manufacturing

C. Services

C. Services

President Roosevelt's New Deal during the Great Depression was a policy to:

A. Protect private businesses

B. Deregulate financial institutions

C. Provide relief and reform

C. Provide relief and reform

US economy is best described as _____ economy, with government playing an important role along with private enterprise. (1 word)

mixed

Which is NOT a feature of American economy?

A. Private ownership of property and businesses

B. Competition among businesses in the market

C. Centralized economic planning by the government

C. Centralized economic planning by the government

Which statement best describes the US and UK's main trading relationships?

A. Both rely heavily on trade with EU countries

B. US trades mostly with Canada, and Mexico, UK trades mainly with US & EU countries

C. US trades mainly with China, UK trades mainly Commonwealth nations

B. US trades mostly with Canada, and Mexico, UK trades mainly with US & EU countries

The United States is one of the world's leading exporters of agricultural products (TRUE/FALSE)

The United States is one of the world's leading exporters of agricultural products

True

What is the difference between a free-market, mixed, and command economy?

A free-market economy relies on private enterprise and supply and demand.

A command economy is fully state-controlled.

A mixed economy combines private market mechanisms with state regulation.

Which economic sector dominates the economies of both the UK and the US?

The service sector, accounting for roughly 80% of GDP in both countries, according to the Theory Review.

Which is NOT a common measure of economic performance?

A. Gross Domestic Product

B. Inflation rate

C. Poverty rate

D. Unemployment rate

C. Poverty rate

Which British industries were nationalized?

Coal, steel, and railways.

What is Thatcherism?

Economic policies under Margaret Thatcher (1979–1990) emphasizing privatization, deregulation, reduced government spending, lower taxes, and curbing union power.

The decline of heavy industries in Britain and the focus on ______ services have marked structural changes in recent decades.

Financial

What was the likely proportion of people employed in the public and private sectors in the UK in 2023?

17.6% public sector and 82.4% private sector.

Which country is described as being among the world's top importers and exporters?

A. British economy

B. American economy

C. Both

B. American economy

Since 1945, the UK economy has experienced relative decline rather than ______ decline.

Absolute

Which of the following was NOT the reason for the UK's relative economic decline since 1945?

Britain had carried out the nationalization of businesses.(quốc hữu hóa doanh nghiệp)

Which statement is NOT true about the UK economy

There has been a period of steady decreasing of living standards

A low rate of ______ industrial investment coupled with a very high rate of overseas investment is a characteristic of the UK economy.

Domestic

Britain remains one of the Group of Seven large industrial economies. (True/False)

Britain remains one of the Group of Seven large industrial economies.

True

Where is the best agricultural land in Britain?

In the southeast of England.

Which is NOT a common economic argument emphasized by the proponents of Brexit?

A. Enhanced job opportunities

B. Reduction in government spending

C. Decreased consumer prices

D. Freedom to negotiate independent trade deals

C. Decreased consumer prices

Which was a primary argument made by the 'Leave' campaign during the Brexit referendum?

Greater control over border and immigration.

What year did the UK hold the referendum on its membership of the European Union?

2016

American agriculture is exceptionally efficient and productive, enabling large-scale food production. (True/False)

American agriculture is exceptionally efficient and productive, enabling large-scale food production.

True

During the late 20th century, the American economy shifted towards a ______-based economy with the growth of sectors like technology, finance, and healthcare.

Service

What is the most likely distribution of sectoral shares in the American economy in 2023?

A. Agriculture 50%, Industry 30%, Services 20%

B. Agriculture 20%, Industry 40%, Services 40%

C. Agriculture 10%, Industry 50%, Services 40%

D. Agriculture 1%, Industry 19%, Services 80%

D. Agriculture 1%, Industry 19%, Services 80%

The percentage of the US workforce in ______ declined during the 20th century, largely due to foreign competition and automation.

Manufacturing

The US economy suffered severely from the two World Wars in the 20th century. (True/False)

The US economy suffered severely from the two World Wars in the 20th century

False

Strong domestic demand is one factor contributing to America's affluence. (True/False)

Strong domestic demand is one factor contributing to America's affluence.

True

By 1913, more than ______ of the world's industrial production came from the US.

One-third (1/3)

The “American system” of mass production was first used in which industry?

The firearms industry.

The first factory in the United States was a cotton textile mill in Pawtucket, in the state of ______.

Rhode Island

Which is the UK's biggest trading partner in 2023?

A. The USA

B. China

C. Germany

D. The Netherlands

A. The USA

When was the First Industrial Revolution in the UK, and what were its key changes?

1760–1840. It involved mechanization of production, the factory system, urbanization, steam power, coal, and textiles.

When was the American Industrial Revolution, and what were its key changes?

Late 19th to early 20th century. It featured mass production, assembly lines, railroad expansion, and the rise of steel and oil.

The Industrial Revolution that started in England during the 18th century brought many ______ to American industry between 1776 and 1860.

Changes

What is often said about the spirit of the Roaring Twenties in the US?

A period of sustained optimism, economic prosperity, consumerism, and cultural dynamism, including jazz and silent movies.

What event brought the Roaring Twenties to an end?

The stock market crash in October 1929, triggering the Great Depression.

What were the major causes of the Great Depression?

The 1929 stock market crash, widespread bank failures, overproduction, declining consumer spending, and weak financial regulations.

The stock market crash of 1929 was the sole cause of the Great Depression. (True/False)

The stock market crash of 1929 was the sole cause of the Great Depression.

False

What were the three key components of the New Deal?

Relief, Recovery, and Reform.

The New Deal was a series of government programs and reforms introduced by President Franklin D. Roosevelt to help the US recover from World War II. (True/False)

The New Deal was a series of government programs and reforms introduced by President Franklin D. Roosevelt to help the US recover from World War II.

False

What were the causes and consequences of the 2007–2008 Global Financial Crisis?

Causes: housing bubble, subprime mortgages, and deregulation.

Consequences: bank failures, rising unemployment, and massive government bailouts.