Ch2: Economic Systems

Socialists believe economic equality is only possible if

The doctrine that government should not intervene in the marketplace is called

The government decides which goods and services will be produced in a

Markets allow us to

Which statement applies to all centrally-planned economies?

In a traditional economy, economic decisions are based largely on

How does specialization affect an economy?

The circular flow model shows

Which economic goals are difficult to achieve in a pure market system?

The free market economist Adam Smith is NOT known for

Philosophy based on thebelief that wealth should be distributed evenly throughout society:

Which of the following countries is the most extreme example of a centrally-planned economy?

 In return for supplying the factors of production - land, labor, or capital - people receive:

In an economy in transition from central planning to free enterprise, you might expect to see

The self-regulating nature of the marketplace is called

Which is a key economic question faced by all countries?

The circular flow model of a mixed economy shows

The free enterprise system of the United States is best described as a

The former Soviet Union was an example of a communist country where

Competition and self-interest are two important forces in