ECON: Chapter 2 - Economic Systems (2024)

The __ is measured by the average value of goods & services used during a given period of time.

The system in which the government owns the major factors of production & attempts to manage output and distribution.

The United States has what kind of economic system?

Economic system in which private individuals own the factors of production.

The process of freely exchanging goods and services between buyers and sellers.

All of the following are characteristics of a pure market economy except

The desire to make money that motivates people to produce and sell goods & services.

__ viewed history as a continual struggle between classes in society.

Rivalry among producers or sellers of similar goods and services to win more business.

Expansion of the economy to produce more goods, jobs, and wealth.

The government controls the factors of production and makes all of the decisions.

The attempt to balance an economic policy so that everyone benefits fairly.

Who is considered the "Father of Economics?"

Combines basic elements of a pure market economy and a command economy.

Freedom, efficiency, equity, security, stability & growth are all goals of

Whatever is owned by individuals rather than the government.

The way in which a nation uses its resources to satisfy its people's wants and needs.

The amount earned after a business subtracts its costs from revenue is

Entire economy is controlled by a central government; supports revolution as a means to overthrow capitalism.

What basic economic question depends on a nation's available natural resources?

What is the goal of economic freedom?

In a __, decisions are based on customs and beliefs that have been handed down from generation to generation.

Economic system in which the government minimizes its interference with the economy.