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.  

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

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

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

True or False:  The Soviet Union was a great economic and political success.

The concentration of productive efforts of individuals/firms on few activities, a specialty,

True or False:  China has a pure market economy.

This value is the love of country, that inspires people to serve. 

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

These revolutionary socialists led by Vladimir Lenin took over Russia & it became the USSR. 

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

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

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

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

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

The income people get for supplying the factors of production, such as land,labor or capital.  

Fair & equitable distribution of wealth or factors of production.

True or False:  The Soviet Union is still a viable economy/country and model of economic power.

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

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

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

Rivalry among businesses to get more customers and higher profits.  

Government programs that protect people experiencing unfavorable economic conditions.

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

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

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.

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

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