Chapter 2 - Economic Systems and American Economy

Question 1

Whatever is owned by individuals rather than government

Accepted Answer

private property

Question 2

All economic systems must answer these 3 questions

Accepted Answer

What, How, Whom

Question 3

Rivalry among producers or sellers of similar goods and services to win more business.

Accepted Answer

competition

Question 4

The goal of economic stability is to reduce extreme ups and downs in the

Accepted Answer

standard of living

Question 5

A law dealing with workers compensation helps provide citizens.

Accepted Answer

economic security

Question 6

The goal of economic stability would be to reduce extreme ups and downs in the

Accepted Answer

standard of living

Question 7

The expansion of the economy to produce more jobs, goods, and wealth.

Accepted Answer

economic growth

Question 8

Today the vast majority of economic systems are

Accepted Answer

mixed

Question 9

Money left over after the cost of production have been paid

Accepted Answer

profit

Question 10

When the benefits of an economic decision exceeds the costs

Accepted Answer

economic efficiency increases

Question 11

In a free enterprise system, who makes the decision about what should be produced?

Accepted Answer

buyers

Question 12

Major characteristic of a pure market system is

Accepted Answer

unrestricted competition

Question 13

The following countries all use command systems EXCEPT

Accepted Answer

France

Question 14

What motivates people to start a new business or expand an existing one?

Accepted Answer

profit incentive

Question 15

Who owns the factors of production in a market system?

Accepted Answer

individuals

Question 16

System in which the government operates the factors of production

Accepted Answer

command

Question 17

The following deal with a system in which individuals own the factors of production EXCEPT

Accepted Answer

command system

Question 18

It would be easiest to start a sporting goods store business in this type system.

Accepted Answer

free enterprise

Question 19

Competition forces businesses to

Accepted Answer

keep prices low

Question 20

Allowing each member of society to make choices is the goal of

Accepted Answer

economic freedom

Question 21

System in which economic decisions are based on customs and beliefs handed down

Accepted Answer

traditional

Question 22

How has government's role in an economy changed since the 1880s?

Accepted Answer

increased significantly

Question 23

The attempt to balance an economic policy so that everyone benefits fairly.

Accepted Answer

economic equity

Question 24

System in which the government has a "hands off" policy on economic matters.

Accepted Answer

laissez-faire system

Question 25

A society of New Guinea natives would have this type economic system

Accepted Answer

traditional

Chapter 2 - Economic Systems and American Economy

Questions 25

Chapter 2 - Economic Systems and American Economy

Questions 25