Which of these is a major advantage of a market economy?

There is a high degree of individual freedom.

Which of the statements best describes the communist ideal?

a. classless society in which everyone works for the common good

What kind of economy offers uniformity in wages regardless of individual productivity?

command and socialist economies

Which of the following could raise the cost of production in a command economy?

a large and inefficient bureaucracy

How is the principle of “There’s No Such Thing As A Free Lunch” illustrated in a socialist economy?

Socialist tend to offer extensive govt services but have high taxes

Which of the following describes a move away from capitalism?

the nationalization of major industries in Hugo Chavez’s Venezuela

Which statement describes why the people in a command economy might resist a shift to a free market economy

People who hold political power are threatened by fundamental changes.

Which of these statements apply to present-day Sweden?

Its unemployment rate and GDP per capita are relatively high.

Which of the following lists economic systems in order from least to most flexible

command, socialism, free market

In a transitioning economy, why would privatization tend to raise a nation’s overall standard of living?

People are more likely to be productive when it benefits them personally

How are economic transactions shaped in a traditional economy?

Elders and ancestors make certain things are done in specific ways.

Which of the following explains why products made under a command economy are more likely to be low quality?

a. The workers who make them have little incentive to make them well.

Which statement describes a disadvantage of a command economy?

Nothing stops the government from producing things that people don’t need

Which of these statements describes a disadvantage of a traditional economy?

New ways of doing things are discouraged.

What is the main difference between Japanese capitalism and capitalism in the United States?

Japan’s government is highly involved in day-to-day business management.

Which of the following is a cause of struggle in the process of privatization?

People must adjust to the costs and risks that are part of capitalism

Which of these is an accurate statement about mixed economies today?

There are more mixed economies in the world than any other kind.

Which of the following is the best description of the economic system in Cuba?

It is a command economy with a strong central authority

Why did Sweden move from socialism to a more mixed economy in the 1980s?

Its citizens objected to the nation’s high rate of taxation

Which of the following states an advantage of a traditional economy?

a. Everyone knows exactly what their function is.

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Economics Ch 2 types

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Questions 28

Answers

1
Which of these is a major advantage of a market economy?
People are likely to be offered goods and services they cannot afford.
It can change direction rapidly as needed when markets change.
There is a high degree of individual freedom.
There is efficient government control of production and distribution.
2
Which of the statements best describes the communist ideal?
classless society where workers are motivated by financial incentives
society which small ruling class gives resources for common good
society where working class is motivated by incentives to produce
a. classless society in which everyone works for the common good
3
What kind of economy offers uniformity in wages regardless of individual productivity?
traditional economies
market and free-enterprise economies
command and socialist economies
all economies
4
Which of the following could raise the cost of production in a command economy?
a large and inefficient bureaucracy
a newly discovered source of raw materials
a free media
a strict quota system
5
How is the principle of “There’s No Such Thing As A Free Lunch” illustrated in a socialist economy?
Socialist offer advantages to wealthy at the expense of those less well off
Socialist economies tend to collapse when they become too large.
Socialist tend to offer extensive govt services but have high taxes
The marketplaces in a socialist economy are free for anyone to enter.
6
Which of the following describes a move away from capitalism?
the nationalization of major industries in Hugo Chavez’s Venezuela
economic reforms following the Great Depression in the United States
Sweden’s 1980s cutback on social programs
the transformation of the former Soviet Union to today’s Russia
7
Which country is an example of a capitalist country?
Cuba
Singapore
Venezuela
North Korea
8
Which statement describes why the people in a command economy might resist a shift to a free market economy
Workers are reluctant to accept complete govt control of their economy
Workers are reluctant to give up their participation in a classless society
People who hold political power are threatened by fundamental changes.
business owners are reluctant to place capital under worker authority
9
Which of these statements apply to present-day Sweden?
Its unemployment rate and GDP per capita are relatively low.
Its unemployment rate and GDP per capita are relatively high.
Its GDP per capita and welfare payout rates are both relatively low.
Its taxation and unemployment rates are relatively low.
10
Which of the following lists economic systems in order from least to most flexible
socialism, command, free market
free market, command, socialism
free market, socialism, command
command, socialism, free market
11
Which of these countries has an economy most similar to that of the former Soviet Union?
Sweden
Norway
North Korea
South Korea
12
Who did Karl Marx believe would be the beneficiaries of socialism?
workers
property owners
capitalists
the government
13
Which of these is the most striking example of the costs and risks of pure capitalism?
the Five-Year-Plan
the Great Depression
the Gosplan
the Great Leap Forward
14
In a transitioning economy, why would privatization tend to raise a nation’s overall standard of living?
It places a nation’s ruling class in position to administer the econ effien
People are less likely to assume the risks of entrepreneurship.
People are more likely to be productive when it benefits them personally
It places the means of production in the hands of the government.
15
How are economic transactions shaped in a traditional economy?
Individuals form networks which they buy, sell,& trade as they choose
Elders and ancestors make certain things are done in specific ways.
The 3 basic questions of production do not arise in this type of economy
Each community decides as a group for whom the group will produce.
16
Which nation today is the most striking example of successful privatization?
North Korea
Soviet Union
Cuba
China
17
Which of the following explains why products made under a command economy are more likely to be low quality?
a. The workers who make them are not given quality-control guidelines.
workers who make them are forced by tradition to use old-fashioned methods
workers who make them are left to manage production facilities on their own
a. The workers who make them have little incentive to make them well.
18
Which system is the government most likely to provide people with goods and services they couldn't afford
free-enterprise economy
traditional economy
market economy
socialist economy
19
Which statement describes a disadvantage of a command economy?
It cannot “change direction” easily if the need arises to do so
It does little to help the less advantaged obtain goods and services needed
Nothing stops the government from producing things that people don’t need
Items tend to be produced solely for the sake of profit.
20
where the transition to capitalism is nearly complete but far from fully effective?
Eastern Europe
North Korea
South Korea
Western Europe
21
Which type of economy is most prevalent in the world today?
mixed
command
traditional
market
22
Which of these statements describes a disadvantage of a traditional economy?
Everyone knows his or her role.
a. New ways of doing things are encouraged.
Difficult economic decisions are made by the state.
New ways of doing things are discouraged.
23
What is the main difference between Japanese capitalism and capitalism in the United States?
Japan’s government is highly involved in day-to-day business management.
Japan has a more dedicated and loyal workforce.
Japan does not permit the sale of corporate stock.
Japan's government regulates private firms to keep competition at a minimum
24
Which of the following is a cause of struggle in the process of privatization?
People must adjust to government control of their economy.
People must decide how best to get along without a free market.
People must become used to no longer owning their own homes and business
People must adjust to the costs and risks that are part of capitalism
25
Which of these is an accurate statement about mixed economies today?
Mixed economies exist mostly in nations with communist governments
Very few economies today can be accurately described as “mixed.”
Most nations that once had mixed economy have evolved into command economy
There are more mixed economies in the world than any other kind.
26
Which of the following is the best description of the economic system in Cuba?
It is a command economy with a strong central authority
a. It is a command economy in transition to a mixed economic system.
a. It is a traditional economy with a strong central authority.
It is a mixed economy in transition to a command economy
27
Why did Sweden move from socialism to a more mixed economy in the 1980s?
welfare and health benefits were no longer needed.
Its citizens demanded that elements of communism be adopted.
govt decided that opening petroleum industry would boost the economy
Its citizens objected to the nation’s high rate of taxation
28
Which of the following states an advantage of a traditional economy?
a. Creativity and original thought are rewarded.
a. Everyone knows exactly what their function is.
There's no bureaucracy to interfere with organizing the economy
a. Property rights are based on tradition.

Economics Ch 2 types Flashcards | StudBud