How could the Chinese economy be characterized?

mixed, but more centrally planned

How is China’s economic system today different from the one in Soviet Russia?

It allows more economic freedom.

Why are free market economies able to grow?

Competition encourages innovation.

What does the expression “the customer is king” mean in a free market economy?

Customers have the power to decide what gets produced.

How is the U.S. government involved in the factor market?

It pays wages to government employees.

How did heavy industry in the Soviet Union grow so quickly?

Soviet planners shifted resources to it.

Which of the following best describes the economy of the United States?

mixed, but more like a free market

Which of the following is characteristic of a centrally planned economy?

The central government makes all economic decisions.

What does the process of specialization do for an economy?

It makes production more efficient.

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

What goods &services should be produced, how, and for whom?

A socialist society has a more flexible command economy than a communist society because

some free market practices combine w/ central econ. planning

Why do people need to buy and sell goods or services?

No one is completely independent.

Where are traditional economies usually found?

in small communities that avoid change

What was the trade-off of the Soviet Union’s focus on heavy industry?

Fewer consumer goods were produced.

The United States economy is a mixed economy

based on a free market, but allowing some gov intervention.

Why might the Soviet planners have favored heavy industry over the makers of consumer goods?

products of heavy ind. provide materials for other ind.

Which of the following is a characteristic of a traditional economy?

It revolves around the family unit.

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

low unemployment due to guaranteed jobs

What is the product market?

households purchase the goods & services that firms produce

Government intervention in a modern economy is useful because

gov are more able to meet some needs & wants of society.

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Econ Ch 2: Types of Economies

31 termsStudBud Administration880 plays

traditional, centrally planned, free market, & mixed economies

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Questions 31

Answers

1
How could the Chinese economy be characterized?
centrally planned
free market
mixed, but more centrally planned
mixed, but more like a free market
2
How is China’s economic system today different from the one in Soviet Russia?
It is not centrally planned.
It allows more economic freedom.
It is socialist, not communist.
It does not own major firms.
3
What “invisible hand” directs the free market?
specialization
competition
incentives and efficiency
circular flow
4
Why are free market economies able to grow?
Everyone acts in their own interest.
Competition encourages innovation.
Consumers can buy all needed goods.
Firms keep producing incentives.
5
What does the expression “the customer is king” mean in a free market economy?
Customers have the power to decide what gets produced.
People with the most money are treated like royalty.
In a service economy, the customer is always right.
Producers of goods are also customers.
6
How is the U.S. government involved in the factor market?
It buys paper from firms.
It purchases telephones and computers..
It pays wages to government employees.
It tells businesses and firms what to purchase
7
How did heavy industry in the Soviet Union grow so quickly?
Farms did not compete.
Products were made better.
Soviet planners shifted resources to it.
Government discouraged competition.
8
Which of the following best describes the economy of the United States?
centrally planned
mixed, but more like a free market
free market
mixed, but more centrally planned
9
What is one of the most important advantages of a free market?
It encourages growth.
It is easy to regulate.
It protects the less fortunate.
It distributes goods equally.
10
Which of the following is characteristic of a centrally planned economy?
The central gov allows the market to set wages for jobs.
The central government enforces laissez-faire policies.
The central government makes all economic decisions.
The central government lets factories set their own goals.
11
What does the process of specialization do for an economy?
It makes production more efficient.
It eliminates unemployment.
It makes labor easier to control.
It fosters competition.
12
Who owns the factors of production?
individuals
households
the market
firms
13
Which of the following is a summary of the three key economic questions?
When, where, & by whom should goods & services be produced?
Who buys which goods & services, & how much will they pay?
What goods &services should be produced, how, and for whom?
How, when, & from whom should consumers get what they want?
14
Why does the U.S. government intervene in the economy?
to limit foreign trade
to restrict the banking industry
to compete with private firms
to promote the general welfare
15
Which of the following is handled by individuals instead of gov in a free market economy?
public education
investment options
national defense
mass transit
16
Which of the following might a government provide as part of a safety net for the people?
regulation of commerce
general elections every four years
unemployment compensation
a strong military defense
17
A socialist society has a more flexible command economy than a communist society because
the central government has all economic and political power.
some free market practices combine w/ central econ. planning
the centers of economic power are all under private control.
an authoritarian government controls the economy.
18
How does a society determine who will get what is produced?
by its needs and wants
by factor payment amounts
by economic equity
by its distribution of income
19
Why do people need to buy and sell goods or services?
People need to provide the market with goods.
People need a competitive society.
People need to make a profit.
No one is completely independent.
20
What two systems were linked in the Soviet Union and China?
socialism and democracy
the free market and capitalism
communism and central planning
traditional economy and authoritarianism
21
Where are traditional economies usually found?
in small communities that avoid change
in small communities that welcome change
in large communities that welcome change
in large communities that are able to deal with disaster
22
What was the trade-off of the Soviet Union’s focus on heavy industry?
Everyone became poor.
It was a better investment.
It created fewer jobs.
Fewer consumer goods were produced.
23
What do people supply in return for factor payments?
innovation, labor, or trade
land, labor, or capital
innovation, profit, or goods
services, goods, or traditions
24
Which of the following is the main incentive for a manufacturer to sell a product?
helping the economy grow
pleasing the consumer
putting others out of business
making profits on sales
25
The United States economy is a mixed economy
based on a cent. planned econ, but limiting gov intervention
based on a free market, allowing no gov intervention.
based on a traditional economy
based on a free market, but allowing some gov intervention.
26
Why might the Soviet planners have favored heavy industry over the makers of consumer goods?
The products of heavy industry brought in more money.
There were more people trained to work in heavy industry.
Consumer goods are not good economic investments.
products of heavy ind. provide materials for other ind.
27
Which of the following is a characteristic of a traditional economy?
It has a high standard of living.
It is usually based on light industrial production.
It encourages innovation and change.
It revolves around the family unit.
28
What must a nation’s economy do in order to improve the standard of living?
reach economic equity
grow
remain stable
allow central planning
29
Which of the following might be a positive aspect of centrally planned economies?
high levels of consumer satisfaction
incentives for workers to be innovative
quick adjustment to changing conditions
low unemployment due to guaranteed jobs
30
What is the product market?
income is received for supplying land, labor, or capital
households purchase the goods & services that firms produce
governments collect taxes from firms and consumers
firms purchase the factors of production from households
31
Government intervention in a modern economy is useful because
gov are more able to meet some needs & wants of society.
the marketplace has many incentives to create public works
the needs and wants of a modern society are always met
free market principles do not encourage growth.

Econ Ch 2: Types of Economies Flashcards | StudBud