Economics - Chapter 2 Review

Which of the following is NOT weaknesses of a command economy?

People realize that resources are scarce and that the factors of production must be used wisely. What goal is this?

Which of the following is a weakness of a market economy

The main strength of a _________________ economy is that it can change direction drastically in a short time.

The Profit Motive is the driving force that encourages people to improve their material well-being.

People want to have stable prices. This economic goal is Price Stability.

People believe in equal pay for equal work. This is Economic Equity.

Most people hope to have a better job and better things in the future. What economic goal is this?

This is where privately owned businesses have the freedom to operate for a profit with limited government intervention.

In ________________, the government owns and controls some, but not all, of the basic productive resources.

People place a high value on their right to make their own economic decisions. What economic goal is this?

Which is not an economic systems that exists today?

The main weakness of a traditional economy is that it discourages new ideas and new ways of doing things.

People want their economic systems to provide as many jobs as possible. What economic goal is this?

An entrepreneur is one who is willing to risk everything to become their own boss.

The Profit Motive is the concept that people have the right to control their possessions as they wish.

The main strength of a __________________ economy is that everyone knows what role to play.

Markets work best when three conditions are met: Which of the following is NOT one of the three?

An economic system is an organized way of providing for the wants and needs of the people.

Which of the following is NOT a Mixed Socalist Nation.

Consumer knowledge means that the consumer is the ruler of the market.

In a command economy, the economic decisions are made at the top and the people have to go along with those choices.

People desire protection from events such as layoffs and illness. This goal is Economic Equity.

In a ______________ economy, a central authority makes most of the what, how, and for whom questions.

In a economy, people and firms act in their own best interests to answer the what, how, and for whom questions.

Voluntary Exchange is the act of buyers and sellers engaging in market transactions.

In a command economy, habit and custom also dictate most social behavior.

Which of the following is NOT a strength of a market economy:

Which of the following is NOT one of the four characteristics of a free enterprise economy

People carry on their economic affairs freely but are subject to some government regulations. This is what?

1. In a market economy, life is pretty stable, predictable, and continuous.

Which of the following is NOT one of the roles of the government in a free enterprise economy.