Chapter 2: Economic Systems

How a society uses scarce resources to satisfy people’s unlimited wants is called an economic

In a communist economy, resources are owned by

With capitalism, investment is driven by

Suppliers ina product market are

The government owns some, but not all, factors of production in what system?

Absolute loyalty to the people in power is required by what system?

With voluntary exchange, a buyer and seller agree to do business together

The nation where government plays the most limited role in the economy is

In a market economy,the real power in the market place is held by the

In economic terms, property means

With capitalism, the allocation of goods and resources is determined by

A circular flow model shows

In a factor market

In a communist economy,workers are

When a nation’s economy privatizes it changes from

Between 1867 and 1894, Karl Marx published a 3-volume study called

With capitalism, income distribution is determined by market forces

Global financial transactions have been made quick, inexpensive, and easy by

An advantage of a pure market economy is that it

When a nation’s economy nationalizes it changes from