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Economic Systems Flashcards | StudBud
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Economic Systems
Economic Systems
23 terms
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Chapter 2 Review
Flashcards
23 cards
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Practice quiz
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Questions
23
Answers
1
The circular flow model shows the movement between what two things?
Money and factors of production
Households and businesses
Labor and taxes
Factors of production and G&S
2
In the product market...
Firms demand productive resources from households
Firms purchase G&S
Firms supply productive resources to households
Households demand G&S from firms
3
The methods by which a society distributes its G&S to meet unlimited wants and needs is called
An economic system
Scarcity
Opportunity cost
Capitalism
4
In the factor market...
Households demand G&S from firms
Firms supply productive resources to households
Firms purchase G&S
Firms demand productive resources from households
5
Why is economic growth important?
Because businesses want to make more money
Because more immigrants are entering the country
Because the population is growing and more jobs are needed
Because competition is ongoing
6
What is not an advantage of a market economy?
freedom
can quickly change direction
decentralized decision making
can adjust to change
7
Each society will determine
who
will consume goods and services based on
Economic equity
Their goals and values
Safety nets
Needs and wants
8
Raising the minimum wage would most like target what economic goal?
price stability
full employment
efficiency
equity
9
Who is central to a market economy by starting new businesses?
the government
consumers
upper management
entrepreneurs
10
Which of the following is NOT one of the seven economic goals?
Security
Efficiency
Scarcity
Growth
11
Subsidies to corn farmers are designed to meet what economic goal?
economic equity
full employment
economic freedom
price stability
12
Which economic system best describes the United States?
Command
Mixed
Free market
Socialism
13
People willingly engaging in market transactions is called
private property
protection
economic freedom
voluntary exchange
14
What determines how resources are allocated in a market economy?
the government
voting
income
needs of the people
15
What type of economic system has the highest degree of government intervention?
Mixed
Market
Command
Traditional
16
Which of the following is an advantage of command economies?
Central planning is flexible
All basic needs are met
Wide variety of G&S is available
Little reward for hard work
17
With capitalism, the distribution of G&S is determined by
Only business owners
Central planning
Market forces
Traditional customs
18
Who most participates in a market economy?
Government
Buyers and sellers
Consumers
Producers
19
The 3 basic economic questions are all of the following EXCEPT
What role will government play in the production of G&S?
Who will consume the G&S?
How will G&S be produced?
What G&S will be produced?
20
Employers aren't allowed to ask about your physical health . This targets what economic goal?
economic security
economic equity
economic effiency
economic freedom
21
Who plays the roles of the protector, consumer, regulator, and promoter of economic goals?
Households
Consumers
Businesses
Government
22
The United States is an example of a
market economy
mixed economy
traditional economy
command economy
23
With capitalism, income distribution is determined by market forces
Determined by central planners
That reward productivity
That reward underutilization
Determined by government policy
