Which statement applies to all centrally-planned economies?

The government makes all important economic decisions.

Socialists believe economic equality is only possible if

the public controls the economy.

exchange things we have for things we want or need.

The former Soviet Union was an example of a communist country where

most economic and political power was controlled by the govt

Which of the following is a feature of a command economy that distinguishes it from a socialist economy?

All production is managed by the government.

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

New ways of doing things are discouraged.

How does specialization affect an economy?

It results in more innovation and growth.

In an economy in transition from central planning to free enterprise, you might expect to see

state firms sold to private individuals or entities.

The circular flow model shows

interactions between households & businesses in free markets

Which of the statements best describes the communist ideal?

a classless society in which everyone works for the common good

Which of the following is a disadvantage of a market economy?

It sustains a high degree of uncertainty.

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

a large and inefficient bureaucracy

The free enterprise system of the United States is best described as a

mixed economy with limited government intervention

Which is a key economic question faced by all countries?

What goods and services should be produced?

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Economic Systems - Chapter 2 Review

27 termsStudBud Administration1,386 plays

Flashcards27 cardsFPractice quizPHost liveL

Questions 27

Answers

1
Which statement applies to all centrally-planned economies?
The government builds every house in every village.
The govt places emphasis on the production of consumer goods
The government makes all important economic decisions.
The government encourages workers to innovate.
2
Socialists believe economic equality is only possible if
everyone makes the same amount of money.
no one has to pay taxes.
the public controls the economy.
medical care is free.
3
The self-regulating nature of the marketplace is called
the safety net.
equity.
the invisible hand.
self-interest.
4
Which of the following countries is the most extreme example of a centrally-planned economy?
Great Britain
North Korea
China
Hong Kong
5
Markets allow us to
sell the most goods we possibly can.
get the lowest prices for what we buy.
exchange things we have for things we want or need.
get the highest prices for what we sell.
6
The former Soviet Union was an example of a communist country where
most economic and political power was controlled by the govt
free enterprise was encouraged.
individual freedom was allowed.
consumers had many choices.
7
The doctrine that government should not intervene in the marketplace is called
socialism.
the trade-off doctrine.
the invisible hand.
laissez faire.
8
Which of the following is a feature of a command economy that distinguishes it from a socialist economy?
All production is managed by the government.
Some degree of private ownership and activity is allowed.
All economic decisions are based on custom and habit.
All economic decisions are made by the free market.
9
Which of these statements describes a disadvantage of a traditional economy?
Difficult economic decisions are made by the state.
New ways of doing things are discouraged.
Everyone knows his or her role.
New ways of doing things are encouraged.
10
How does specialization affect an economy?
It creates duplication of effort.
It discourages entrepreneurs.
It results in more innovation and growth.
It makes the economy less efficient.
11
Which type of economy is most prevalent in the world today?
traditional
market
mixed
command
12
In a traditional economy, economic decisions are based largely on
science.
technology.
socialism.
custom.
13
In an economy in transition from central planning to free enterprise, you might expect to see
private firms sold to the government.
state firms sold to private individuals or entities.
increased job security.
increased govt presence in the factor and product markets.
14
Which economic goals are difficult to achieve in a pure market system?
equality and security
freedom and equity
innovation and security
efficiency and freedom
15
A social philosophy where democratic means should be used to distribute wealth more evenly
collectivism.
socialism.
authoritarianism.
communism.
16
The circular flow model shows
how many firms can support the needs of how many households.
what inputs are required for what outputs.
how profits are made.
interactions between households & businesses in free markets
17
In return for supplying the factors of production—land, labor, or capital—people receive
salaries.
social security.
workers' compensation.
factor payments.
18
In what kind of economy does the government own some of the factors of production?
communist
traditional
socialist
traditional
19
Which of the statements best describes the communist ideal?
society where small ruling class administers resources for the common good
a classless society in which everyone works for the common good
a classless society in which workers are motivated by financial incentives
a society in which the working class is motivated by incentives to produce
20
Which of the following is a disadvantage of a market economy?
It discourages creativity and new ideas for doing things.
It sustains a high degree of uncertainty.
It restricts to personal freedom.
It does not allocate resources as efficiently as other types of economies.
21
The government decides which goods and services will be produced in a
fluctuating economy.
mixed economy.
market economy.
command economy.
22
Competition and self-interest are two important forces in
traditional economies.
communist economies.
centrally-planned economies.
free market economies.
23
Who did Karl Marx believe would be the beneficiaries of socialism?
capitalists
property owners
workers
the government
24
Which of the following could raise the cost of production in a command economy?
a newly discovered source of raw materials
a free media
a strict quota system
a large and inefficient bureaucracy
25
The free enterprise system of the United States is best described as a
free market economy.
traditional economy.
mixed economy with limited government intervention
mixed econ with equal amts of freedom and govt intervention
26
Which nation today is the most striking example of successful privatization?
Cuba
Soviet Union
North Korea
China
27
Which is a key economic question faced by all countries?
How big should the army be?
What goods and services should be produced?
How much money should be raised in taxes?
How many schools should be built?

Economic Systems - Chapter 2 Review Flashcards | StudBud

Economic Systems - Chapter 2 Review

27 termsStudBud Administration1,386 plays

Economic Systems - Chapter 2 Review

Flashcards27 cardsFPractice quizPHost liveL

Questions 27

Answers

1
Which statement applies to all centrally-planned economies?
The government builds every house in every village.
The govt places emphasis on the production of consumer goods
The government makes all important economic decisions.
The government encourages workers to innovate.
2
Socialists believe economic equality is only possible if
everyone makes the same amount of money.
no one has to pay taxes.
the public controls the economy.
medical care is free.
3
The self-regulating nature of the marketplace is called
the safety net.
equity.
the invisible hand.
self-interest.
4
Which of the following countries is the most extreme example of a centrally-planned economy?
Great Britain
North Korea
China
Hong Kong
5
Markets allow us to
sell the most goods we possibly can.
get the lowest prices for what we buy.
exchange things we have for things we want or need.
get the highest prices for what we sell.
6
The former Soviet Union was an example of a communist country where
most economic and political power was controlled by the govt
free enterprise was encouraged.
individual freedom was allowed.
consumers had many choices.
7
The doctrine that government should not intervene in the marketplace is called
socialism.
the trade-off doctrine.
the invisible hand.
laissez faire.
8
Which of the following is a feature of a command economy that distinguishes it from a socialist economy?
All production is managed by the government.
Some degree of private ownership and activity is allowed.
All economic decisions are based on custom and habit.
All economic decisions are made by the free market.
9
Which of these statements describes a disadvantage of a traditional economy?
Difficult economic decisions are made by the state.
New ways of doing things are discouraged.
Everyone knows his or her role.
New ways of doing things are encouraged.
10
How does specialization affect an economy?
It creates duplication of effort.
It discourages entrepreneurs.
It results in more innovation and growth.
It makes the economy less efficient.
11
Which type of economy is most prevalent in the world today?
traditional
market
mixed
command
12
In a traditional economy, economic decisions are based largely on
science.
technology.
socialism.
custom.
13
In an economy in transition from central planning to free enterprise, you might expect to see
private firms sold to the government.
state firms sold to private individuals or entities.
increased job security.
increased govt presence in the factor and product markets.
14
Which economic goals are difficult to achieve in a pure market system?
equality and security
freedom and equity
innovation and security
efficiency and freedom
15
A social philosophy where democratic means should be used to distribute wealth more evenly
collectivism.
socialism.
authoritarianism.
communism.
16
The circular flow model shows
how many firms can support the needs of how many households.
what inputs are required for what outputs.
how profits are made.
interactions between households & businesses in free markets
17
In return for supplying the factors of production—land, labor, or capital—people receive
salaries.
social security.
workers' compensation.
factor payments.
18
In what kind of economy does the government own some of the factors of production?
communist
traditional
socialist
traditional
19
Which of the statements best describes the communist ideal?
society where small ruling class administers resources for the common good
a classless society in which everyone works for the common good
a classless society in which workers are motivated by financial incentives
a society in which the working class is motivated by incentives to produce
20
Which of the following is a disadvantage of a market economy?
It discourages creativity and new ideas for doing things.
It sustains a high degree of uncertainty.
It restricts to personal freedom.
It does not allocate resources as efficiently as other types of economies.
21
The government decides which goods and services will be produced in a
fluctuating economy.
mixed economy.
market economy.
command economy.
22
Competition and self-interest are two important forces in
traditional economies.
communist economies.
centrally-planned economies.
free market economies.
23
Who did Karl Marx believe would be the beneficiaries of socialism?
capitalists
property owners
workers
the government
24
Which of the following could raise the cost of production in a command economy?
a newly discovered source of raw materials
a free media
a strict quota system
a large and inefficient bureaucracy
25
The free enterprise system of the United States is best described as a
free market economy.
traditional economy.
mixed economy with limited government intervention
mixed econ with equal amts of freedom and govt intervention
26
Which nation today is the most striking example of successful privatization?
Cuba
Soviet Union
North Korea
China
27
Which is a key economic question faced by all countries?
How big should the army be?
What goods and services should be produced?
How much money should be raised in taxes?
How many schools should be built?