Chapter 2: Economic systems

This is the method used by a society to produce and distribute goods and services.

True or False:  The Soviet Union is still a viable economy/country and model of economic power.

Government programs that protect people experiencing unfavorable economic conditions.

Social/political belief that democratic means are used to distribute wealth equally in society.

Innovation and efficiency which leads to a bigger economy & higher living standards for people.

True or False:  The United States of America has a mixed economy.  

The income people get for supplying the factors of production, such as land,labor or capital.  

True or False:  The Soviet Union was a great economic and political success.

Freedom from government intervention; allows people to make their own choices.

Centrally planned economy, planners own factors of production & make all economic decisions. 

Political system with centrally planned economy, all power is held by the government.

True or False:  Cuba & North Korea have a command economy and a communist government.

The concentration of productive efforts of individuals/firms on few activities, a specialty,

Market based economy plus government intervention allows for choice in markets and equity. 

True or False:  China has a pure market economy.

The financial gain made in a transaction, money left over after all costs are paid. 

Economic system that relies on customs & rituals to answer basic questions.  

Communist governments have used this power to control their citizens through strict obedience.

Most countries in the world today have this type of economy:

Making the most efficient use of resources so that there are resources available in the future.

Your interests, looking out for number one, doing things that benefit you individually.

This is where buyers and sellers enter into voluntary exchange.  Can be anywhere.  

What drives people into business, what encourages people to act in a certain way.  

These revolutionary socialists led by Vladimir Lenin took over Russia & it became the USSR. 

True or False:  Private property is property that is owned by people/companies not government 

System with no government intervention, people own factors & make their own choices in markets.

This value is the love of country, that inspires people to serve. 

Fair & equitable distribution of wealth or factors of production.

True or false: The Soviet Union had rampant corruption, financial problems & chronic shortages.

Rivalry among businesses to get more customers and higher profits.