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Economic Systems Flashcards | StudBud
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Economic Systems
Economic Systems
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#economicsystems assessment
Flashcards
15 cards
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Questions
15
Answers
1
Which of the following is a summary of the basic economic questions?
Who will buy which goods, and how much they will pay?
How, when and from who do consumers get what they want?
What goods & services should be produced, how, and for whom?
When, where and by whom should goods be produced?
2
What "invisible hand" directs the free market?
Circular flow
Incentives and efficiency
Self-interest and competition
Specialization
3
Which of the following might be a positive aspect of centrally planned economies?
Low unemployment due to guaranteed jobs
Quick adjustment to changing conditions
Incentives for workers to be innovative
High levels of consumer satisfaction
4
The power of consumers to decide what gets produced is called:
Communism
Consumer sovereignty
Carrot & stick
Command economy
5
What are two things that a command economy fails to provide consumers?
equity and consumer choice
jobs and private property
variety of goods and responsive price
incentives and income
6
The method used by a society to produce and distribute goods and services is called:
Socialism
Profit
Economic system
Safety net
7
The market in which households buy the goods & services that firms produce is called:
Product market
Factor market
Closed market
Open market
8
A point on the production possibilities curve represents
an economy is using all resources productively/efficiently
an economy is producing only one good or service
an economy is growing
an economy is being underutilized
9
Any arrangement that allows buyers and sellers to exchange things is called:
Competition
Market
Self-interest
Circular flow
10
The process of bringing new methods, products or ideas into use is called:
Economic system
Growth
Income
Innovation
11
Which of the following best describes the economy of the United States?
Centrally planned
Free market
Mixed, but more like a free market
Mixed, but more centrally planned
12
An economic system that relies on custom and habit to answer the three economic questions:
Traditional economy
Mixed economy
Capitalism
Communism
13
What happens in the product market?
Governments collect taxes from firms and consumers
Households purchase the goods & services that firms produce
Firms purchase the factors of production from households
Income is received for supplying land, labor or capital
14
What do people supply in return for factor payments?
Innovation, labor, trade
Land, labor or capital
Services, goods, or traditions
Innovation, profit or goods
15
In which economy does the government make all the decisions?
Laissez faire
Centrally planned
Free enterprise
Mixed
