Econ Ch 2 Quiz

desire to make money that motivates people to produce goods and services

Since the 1880's, the role of government in the U.S. has increased significantly

system combining characteristics of more than one type of economy

The process of freely exchanging goods and services between buyers and sellers

One advantage of a traditional economy is

what motivates people to establish new businesses or expand existing ones?

Who owns the factors of production and makes economic decisions in a market economy?

Almost all economic systems today are mixed economies

All economic systems do NOT have to answer the same three basic questions

amount left over after all the costs have been paid

economic system in which private individuals own factors of production

whatever is owned by individuals rather than government

rivalry among producers/sellers of similar goods/services to win more business

In a free-enterprise system individuals are free to own and control the factors of production

Way in which nation uses its resources to satisfy its people's needs and wants

in a command economy, factors of production are decided by

system in which government controls factors of production and makes all decisions of using them

system in which economic decisions are based on customs that have been handed down from generation to generation

Competition forces businesses to