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Duplicate of Economics Chapter 2 Flashcards | StudBud
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Duplicate of Economics Chapter 2
Duplicate of Economics Chapter 2
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#economics
Flashcards
28 cards
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Questions
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Answers
1
How do consumers exercise their power in the American economy?
by becoming entrepreneurs
by saving their money
by deciding what to purchase
by working for busniesses
2
Who plays all of the following roles - protector, provider, regulator and consumer - in the US?
workers
businesses
entrepreneurs
government
3
The ways in which l,l,c are combined answers what question
what will be produced
how will goods be produced
how can we provide a safety net
who will consume the goods
4
Which of the following is a characteristic of a traditional economy?
large communities that welcome change
small, close communities that welcome change!
small, close communities that avoid new tech
large communities that can deal with large scale disasters
5
how does society decide who gets what is produced
by its needs and wants
by economic equity
distribution of income
factor payments
6
Traditional economies are usually
large, widespread, welcome change and tech
small, close, welcome change and tech
small, close, avoid change and new tech
large, widespread, deal well with disaster
7
who owns the factors of production?
firms
individuals
households
the market
8
which is a characteristic of a centrally planned economy?
central gov. allows market to set wages
central gov. enforces laissez-faire policies
central gov. makes all economic decisions
central gov. lets factories set their own goals
9
Which of the following is the main incentive for a manufacturer to sell a product?
putting others out of business
pleasing the consumer
making profits on sales
helping the economy grow
10
What must a nation's economy do in order to improve standard of living?
allow central planning
reach equity
grow
remain stable
11
Why are free market economies able to GROW?
Everyone acts in their own self interest
Consumers can buy all needed goods
Firms keep producing incentives
Competition encourages innovation
12
why do people buy and sell goods and services
people need to provide the market with goods
people need to make a profit
people need a competitive society
no one is completely independent
13
What is an important advantage of the free market?
encourages growth
protects the less fortunate
distributes goods equally
easy to regulate
14
Which of the following best describes the US economy?
mixed, but on the side of centrally planned
centrally planned
mixed, but on the side of free market
free market
15
what is the invisible hand that regulates the free market
competition and self-interest
incentive and efficiency
specialization
competition between firms
16
The US Gov intervenes in the economy in order to
promote the general welfare
protect laissez-faire
impose barriers on foreign trade
provide competition for private firms
17
Why are entrepreneurs important to the free enterprise economy?
They help define the 7 economic and social goals
They start new businesses
They do not pay taxes
They pay high wages to their employees
18
Which philosopher argued that a free market would regulate itself?
Adam Smith
Vladimir Lenin
Friedrich Engels
Karl Marx
19
What 2 systems were linked in the Soviet Union and China?
socialism and democracy
the free market and capitalism
communism and central planning
traditional economy and authoritarianism
20
Which is an example of economic growth?
A man decides to quit working as a waiter to work in sales
When a new ball bearing plant opens, 1,500 jobs are created
The price of vegetables increases sharply in the spring
An employer is fined for refusing to hire women for new jobs
21
What do people supply in return for factor payments
innovation, labor, trade
innovation, profit, goods
land, labor, capital
services, goods, traditions
22
What might be a hardship when making transition from centrally planned to free market?
entrepreneurs wouldn't be able to start new businesses
only poor quality goods would become available
workers would lose job security and guaranteed income
farmers would have to grow crops gov. instructs them to
23
Which of the following is a disadvantage of a market economy?
It does not provide for everyone
Consumer satisfaction is low
It limits freedom for producers and consumers
It limits private property rights
24
Which of the following might a gov provide as part of a safety net?
regulation of commerce
a strong military
unemployment compensation
General elections every year
25
What does specialization do for an economy?
fosters competition
makes production more efficient
makes labor easier to control
eliminates unemployment
26
Which people ultimately determine the products that a free enterprise economy produces?
consumers
property owners
Congress
local governement
27
The role of government in a command economy is to
encourage entrepreneurs
make major economic decisions
ensure the availability of consumer products
promote economic freedom
28
How is China's economic system today different than the Soviet Union?
it does not own major firms
it allows more economic freedom
it is not centrally planned
it is socialist, not communist
