Economics Unit 2 Test Review

In a Centrally Planned Economy who answers the basic economic questions?

How does a society decide what to produce?

what type of economy allows individuals and the government to answer the three basic questions

What are the three basic economic questions?

economic & political systems belief that wealth should be distributed evenly throughout society

Property rights, taxation and contracts are given to United States citizens from what document?

What is a basic economic problem that all societies face?

What incentives are most consumers looking for?

Why does the government create public policies?

In what part of the circular model does a household buy goods and services produced by firms?

How can you have positive and negative externalizations?

self interest and competition work together to keep the marketplace fair and prices responsive

What does GDP stand for?

Which is the correct term for collecting income for supplying land, labor, or capital?

How are public goods financed?

Which of the following can help boost productivity?

What can make a business cycle fluctuate?

How does a Free Market economy answer the basic economic questions?

Efficiency, Freedom, Security, Equity, and Growth are all examples of Economic ____ in society.

When does market failure occur?

How does the government redistribute wealth of some people to others to help with poverty?

Which of the following cost-benefit criteria must be present to create a public good?

The government intervenes to influence __________________ trends

All of the following are part of the Free Enterprise system EXCEPT which?

Who saidcompetition and our own self-interest actually help to keep the marketplace functioning

Which of the following best describes a Traditional Economy?

Who developed the idea of communism?

What do markets allow us to exchange?

To create any type of product which of the following resources must be used?

Which of the following are the two key roles of a free enterprise system?