Duplicate of Chapter 2: Economic systems

True or false: The Soviet Union had rampant corruption, financial problems & chronic shortages.

Economic system that relies on customs & rituals to answer basic questions.  

Your interests, looking out for number one, doing things that benefit you individually.

What drives people into business, what encourages people to act in a certain way.  

The Basic Problem in Economics is

True or False:  China has a pure market economy.

Centrally planned economy, planners own factors of production & make all economic decisions. 

Food, clothing, shelter, education - constitue people's

The resources of land, labor, capital, and entrepreneurship are together called

This is the method used by a society to produce and distribute goods and services.

True or False:  The United States of America has a mixed economy.  

Innovation and efficiency which leads to a bigger economy & higher living standards for people.

Social/political belief that democratic means are used to distribute wealth equally in society.

Market based economy plus government intervention allows for choice in markets and equity. 

Things other than basic needs are referred as 

True or False:  Private property is property that is owned by people/companies not government 

Communist governments have used this power to control their citizens through strict obedience.

Making the most efficient use of resources so that there are resources available in the future.

This is where buyers and sellers enter into voluntary exchange.  Can be anywhere.  

Political system with centrally planned economy, all power is held by the government.

Rivalry among producers & sellers to win business by offering the lowest prices is

Most countries in the world today have this type of economy:

Activities done for a fee are called

True or False:  Cuba & North Korea have a command economy and a communist government.

Rivalry among businesses to get more customers and higher profits.  

The financial gain made in a transaction, money left over after all costs are paid. 

Freedom from government intervention; allows people to make their own choices.

System with no government intervention, people own factors & make their own choices in markets.