Topic 2: Economic Systems

Oil, Timber and Water are ______

With voluntary exchange, a buyer and seller agree to do business together

The nation where government plays the most limited role in the economy is

With capitalism, investment is driven by

In a market economy,the real power in the market place is held by the

In a factor market

With capitalism, the allocation of goods and resources is determined by

How a society uses scarce resources to satisfy people’s unlimited wants is called an economic

In a communist economy, workers are

In economic terms, property means

What is NOT an advantage of the free market

The government owns some, but not all, factors of production in what system?

Absolute loyalty to the people in power is required by what system?

With capitalism, income distribution is determined by market forces

When a nation’s economy nationalizes it changes from

A circular flow model shows

Suppliers in a product market are

In a communist economy, resources are owned by

When a nation’s economy privatizes it changes from