Chapter 2 Review + Allocation Methods

What group determines the products that a free enterprise economy produces?

the purpose of government in a command economy is to

The US can best be described as having a

federal program of disability and retirement benefits that covers most working people

This allocation method is when the owner determines who and how to distribute them.

act of buyers and sellers freely engaging in market transactions

income that does not increase even if prices go up

This allocation method uses voting.

This allocation method gives or takes productive resources by using threats.

driving force that encourages people and organizations to improve their material well-being

organized way in which a society provides for the wants and needs of its people

This allocation method is used when the person in power decides who gets what.

This allocation method is also known as random selection.

This allocation method has a "winner".

extent to which individuals or organizations are better off at the end of an economic exchange

market economy in which private citizens own the factors of production

an example of a market economy is

central authority make most of the what, how, and for whom decisions

This allocation method uses the forces of supply and demand.

This allocation method determines who gets the resources based on need or merit.

privilege that entitles people to own their posessions

This allocation method gives resources according to who is first.

Which is NOT considered an economic or social goal?

economic system where people carry on their economic affairs freely but have some gov't rules