Ch2 Review

A good that may be sold in the product market by a firm may be

HOUSEHOLDS can sell both LAND, LABOR, and CAPITAL, and GOODS and SERVICES

In the circular flow diagram households ...

Which of the following is a summary of the three key economic questions?

Most economic systems today are a blend of Free Market and Centrally Planned economies

Conservatives favor a TRADITIONAL ECONOMY

economic systems are the structures societies use to produce and distribute goods and services

factor payments

how does society determine who will get what is produced?

In what kind of an economy does the government make all the decisions?

efficiency can be increased through

In which of the following lists of mixed economies does the free market system dominate?

Which of the following is characteristic of a traditional economy?

competition and self interest lead to

an example of us safety nets are

in a mixed economy firms sell in the product market to ...

What is one of the most important advantages of a free market?

Which of the following is the main incentive for a manufacturer to sell a product?

argued that a free market would regulate itself with little government involvement?

In a Free Market economy answers to the 3 key economic questions are made by VOLUNTARY EXCHANGE

an example of labor being sold to the government would be

A HOUSEHOLD is a person or group of people living in a single residence.

Which of the following might be a positive aspect of centrally planned economies?