Applied Economics Chapter 2

Traditional economies are often found in _______ areas.

Which economic system is the only pure system that really exists?

In a __________ economy the government owns all property, factories and land.

What kind of economy is a blend of economic systems?

In this economic system, government leaders give answers to the three economic questions.

According to Adam Smith, what will the best economic system have?

___________ is another name for capitalism.

Adam Smith believed that competition acts like an __________.

This is the money left over after production costs have been paid.

This man is widely considered to be the father of modern economics.

What are the three basic economic questions?

Under this form of government, one person or a small group  rules the country by force.

An ___________ is something that makes a person take an action.

An elected leader who makes and carries out laws.

What is another name for a command economy?