All countries engage in trade, because factors of production...

are unequally distributed around the world

Free enterprise system is based on these factors

private ownership, individual initiative, profit,competition

In a free enterprise system, when would prices most likely fall?

demand decreases - supply stays the same

Communist economies are characterized by

state ownership of the means of production

Advantage of a corporation over a sole proprietorship...

corporations get money from many investors

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Government Ch.23 - Comparative Economic Systems

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#Capitalism

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Questions 20

Answers

1
Combines resources to start a business
entrepreneur
stock holder
communist
socialist
2
All countries engage in trade, because factors of production...
are needed in certain economic systems
are unequally distributed around the world
allow them to produce everything they need
make all countries equally competititve
3
A country that provides many services
welfare state
capitalism
communist
socialist
4
Free enterprise system is based on these factors
nationalization, public welfare, high taxes, command economy
land, capital, labor, entrpreneurship
one-party rule, central plan, collectivization, state owner
private ownership, individual initiative, profit,competition
5
Trade agreement between the U.S., Mexico and Canada
NAFTA
GATT
UN
EU
6
Placing enterprises under governmental ownership
utilitarianism
privatization
collectivism
nationalization
7
Term for the earnings of a business, minus the costs
profit
supply
capital
loss
8
What is true about physical capital?
it is the same as natural resources
it is not used in command economies
it is the least important factor of production
it is human-made resources
9
In a free enterprise system, when would prices most likely fall?
demand increase - supply falls
supply and demand both increase
demand increases - supply stays the same
demand decreases - supply stays the same
10
Communist economies are characterized by
strong unions and worker protections
lack of central planning
free elections
state ownership of the means of production
11
Which communist policy forced farmers to give up their land?
privatization
globalization
collectivization
nationalization
12
What does the security and exchange system do?
protects the rights of U.S. workers
sets interest rates
regulates the U.S. banking system
oversees the stock market
13
All of the following are factors of production EXCEPT
land
capital
labor
time
14
A supporter of laissez-faire would be against?
diplomatic relations with foreign countries
government price controls
restaurant inspections
funds spent on the military
15
This is typical of socialist economies
central planning
privatization
collectivization
high taxes
16
Protects industries from foreign competition
protectionism
globalization
trade embargo
tariff war
17
System where goods are bought and sold in a free market
entrepreneurship
globalization
socialism
free market system
18
Why has socialism become unpopular in some European nations?
move towards communism
programs too costly
move towards collectivism
hurts democracy
19
Stopping trade with a country
Trade War
Import Quota
Protectionism
Trade Embargo
20
Advantage of a corporation over a sole proprietorship...
share values increase every year
corporations get money from many investors
shareholders cannot lose what they invest
fewer laws apply to a corporation

Government Ch.23 - Comparative Economic Systems Flashcards | StudBud