Economics - Chapter 2

Question 1

involves concentrating efforts in a certain area

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specialization

Question 2

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

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market forces

Question 3

The idea that consumers are free to buy what they want

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consumer sovereignty

Question 4

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

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consumer

Question 5

Producers and consumers drive the economy of a

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market economy

Question 6

A grocery store shows the influence of competition when

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2 brands of peanut butter with diff. prices are on the shelf

Question 7

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

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Computer linkages

Question 8

The situation where women tend crops and raise children while men hunt is often found in a

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traditional economy

Question 9

market for factors of production

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Factor Market

Question 10

Market for goods and services

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product market

Question 11

Which involves having the government make most economic decisions?

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command economy

Question 12

An individual buying a DVD is participating in the

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product market

Question 13

Which is based mainly on individual choice?

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market economy

Question 14

Which involves making economic choices based on customs?

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traditional economy

Question 15

Government officials deciding the distribution of all resources is a feature of

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command economy

Question 16

In today's world, there are

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no pure market economies

Question 17

Freedom of economic choice is one of the chief advantages of a

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market economy

Question 18

An example of intellectual property is a

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song

Question 19

A circular flow model shows how

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all interactions occur in a market economy

Question 20

A business taking a survey to find out consumer's wants is an illustration of

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consumer sovereignty

Question 21

The foundation of market economies

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competition

Question 22

In economic terms, laissez faire means that the government

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stays out of the marketplace

Question 23

Financial gain from a business transaction

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profit

Question 24

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

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authoritarian

Question 25

In a communist economy, resources are owned by

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government

Question 26

Karl Marx predicted that in time

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workers would overthrow the industrial system

Question 27

To leave things alone...

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laissez faire

Question 28

Bureaucrats deciding what products should be sold in stores is a feature of a

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command economy

Question 29

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

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for the benefit of both

Question 30

An individual hiring a waitress is participating in the

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factor market

Economics - Chapter 2

Questions 30

Economics - Chapter 2

Questions 30