What is a characteristic of a command economy compared with other types of economic systems?

Government provides an equal standard of living for everyone

How does the Federal Reserve impact the U.S. economy?

Circulates more money to stimulate consumer purchasing

What is a difference between a traditional economy and a free enterprise system?

Supply/demanddrive economic decisions in a free enterprise.

What is an ADVANTAGE of a market economy compared with a traditional economy?

innovation and competition in the marketplace are encouraged

What is a difference between a market economy and a command economy?

Competition provides consumers choices in a market economy.

What is a DISADVANTAGE of a traditional economy compared to other types of economic systems?

State-of-the-art technology is not used.

What is an advantage of the market portion of the United States economic system?

Businesses determine what to produce based on demand.

Compare the way economic decisions are made in an Amish community to that of Russia.

The Amish make decisions based on tradition.

How does a bear market impact the U.S. economy?

Consumers will spend less money and save more.

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BU20 Module 2 Economics

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1
What is a characteristic of a command economy compared with other types of economic systems?
Decisions are based on customs and traditional thinking.
Consumers make the decisions about what is produced.
Business owners make their own economic decisions.
Government provides an equal standard of living for everyone
2
How does the Federal Reserve impact the U.S. economy?
Circulates more money to stimulate consumer purchasing
Raises interest rates to stimulate consumer purchasing
Decreases money circulation to help businesses
Raises interest rates to increase employment opportunities
3
What is a difference between a traditional economy and a free enterprise system?
Traditional free enterprise system decisions are made.
Competition determines decisions in a traditional economy.
The free enterprise system focuses on family.
Supply/demanddrive economic decisions in a free enterprise.
4
What is an ADVANTAGE of a market economy compared with a traditional economy?
innovation and competition in the marketplace are encouraged
the government decides what is produced.
there is an equal standard of living for everyone.
economic decisions are made the same as always.
5
Sonic began offering salads, Hardees also started to sell salads. This is an example of:
self-interest and profit motive.
freedom of enterprise and choice.
competition.
private property ownership.
6
What is a difference between a market economy and a command economy?
The government ensures competition in a command economy.
The government selects what is produced in a market economy.
Supply and demand determine prices in a command economy.
Competition provides consumers choices in a market economy.
7
What is a DISADVANTAGE of a traditional economy compared to other types of economic systems?
State-of-the-art technology is not used.
Decisions are centered toward the family.
Government takes care of people's needs.
Competition guides production decisions.
8
What is an advantage of the market portion of the United States economic system?
There is no government regulation of any businesses.
Consumers only purchase what the government allows.
Government tells business what to produce based on supply.
Businesses determine what to produce based on demand.
9
Compare the way economic decisions are made in an Amish community to that of Russia.
Individuals make the decisions in Cuba.
Tradition dictates how decisions are made in Cuba.
Individuals and government make the decisions for the Amish.
The Amish make decisions based on tradition.
10
How does a bear market impact the U.S. economy?
Businesses will be able to hire more workers.
Consumers will be able to spend more money.
Business sales will increase rapidly.
Consumers will spend less money and save more.

BU20 Module 2 Economics Flashcards | StudBud