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Ch. 2 Economic Systems Flashcards | StudBud
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Ch. 2 Economic Systems
Ch. 2 Economic Systems
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Economics test review
Flashcards
25 cards
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Practice quiz
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Questions
25
Answers
1
What is
not
a benefit of a free market economy
?
a variety of goods
economic freedom
creation of wealth
growing gap between rich and poor
2
an expectation that encourages people to act in a certain way
incentive
opportunity
bribe
hope
3
Economic system guided by tight government control
free enterprise
Traditional
command (centrally planned)
stock market
4
a situation where households purchase goods and services from firms
fire sale
Super Wal-Mart
product market
factor market
5
What is the function of an economic system?
to give all producers the same access to consumers
make sure all people have access to goods
to make sure people are paid for their labor
to produce and distribute goods and services
6
The method used by a society to produce and distribute goods and services
production
the way
economic system
sequencing
7
Who owns the factors of production in a free market?
individuals
government
the market
private businesses
8
the doctrine that government generally should not intervene in the marketplace
communism
capital estate
laissez faire
united we stand
9
a person or group of people living in the same residence
household
firm
market
10
The economic system of United States is considered a
free market capitalist economy
socialist economy
traditional economy
command economy
11
What is the struggle among various producers for the consumer's business called?
self-regulation
incentive
competition
socialism
12
term describing the self-regulating nature of the marketplace
laissez-faire
incentive
"invisible hand"
13
Competition and self-interest are two important forces in
socialist economies
command economies
traditional economies
free market economies
14
Which of the following is largely responsible for the growth of a free enterprise system?
consumerism
Gross Domestic Product
government
profit motive
15
What
"invisible hand
" regulates the free market economy?
competition between firms
specialization
incentives and efficiency
self-interest and competition
16
Why are products made under a command economy more likely to be low quality?
the workers have little incentive to make them well
there are no quality control guidelines
the workers manage production facilities on their own
the workers are are forced to use old fashioned methods
17
Which country has the most extreme example of a command economy?
Hong Kong
Great Britain
China
North Korea
18
What best describes the role of government in a free enterprise system?
control business activities
decide the companies to be formed and who will manage them
allow people to run their businesses to maximize profits
19
Which of the following is
NOT
a characteristic of a command economy?
the central government makes all economic decisions
the central government owns all land and capital
each collective or factory sets its own production goals
20
one's own personal gain
materialism
self-interest
motivation
21
What is the
product
market?
the market in which income is received for selling resources
market in which firms purchase the resources households
households purchase goods and services from firms
22
economic system guide by customs and rituals
Customary
Traditional
Command
Free-Market
23
To improve its
standard of living
, a nation's economy must
grow through innovation
remain stable
reach economic equity
allow the government to make all of the decisions
24
Which of the following is
NOT
a key economic question?
what goods and services should be produced?
Who consumes these goods and services
How to make sure that goods and services are paid for
25
Economic system guided largely by consumer influence
Traditional
Stock market
Command
free enterprise
