stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
Economic Systems Flashcards | StudBud
Explore
/
Economic Systems
Economic Systems
33 terms
·
StudBud Administration
·
4,980 plays
Chapter 2
Flashcards
33 cards
F
Practice quiz
P
Host live
L
Questions
33
Answers
1
Gov't in mixed economies: establish institutions, step in when markets operate unacceptably and
plan the goods and services for production
provide certain goods/services that markets do not always
close banks when there is a downward turn in economy
economic planning is done by the government
2
All of the following represent problems with command economies EXCEPT
the system discourages innovation
the system can't meet consumer's wants or needs
since there are no incentives growth is nearly impossible
the system encourages change
3
What does the lower line of monetary flow, marked letter C, represent?
firms pay households for land, labor, and capital
mixed economy
firms pay households for goods and services
households pay firms for land, labor, and capital
4
Which of the following was a free market philosopher?
Vladimir Lenin
Karl Marx
Friedrich Engels
Adam Smith
5
The circular flow model of a mixed economy shows
how government interacts with households and firms
how taxes and profits are related
the physical and monetary flow between households and firms
only how firms and households interact
6
The fairness with which an economy distributes its resources and wealth is known as
economic freedom
economic equity
economic stability
economic security
7
A society that puts a high value on economic security seeks to provide ____ with support
liberal elites
religious right
less fortunate members
wealthiest members
8
What does the upper half of the figure, marked letter A represent?
factor market
product market
traditional economy
the government
9
Which of the following is characteristic of a traditional economy?
they have a high standard of living
they are usually based on light industrial production
children tend to have the same jobs as their parents did
Communities tend to be fast growing
10
A key element of economic ________ is scientific and technological innovation
freedom
security
equity
growth
11
All the boys are expected to become farmers when adults just as their fathers and grandfathers
centrally planned economy
false economy
command economy
traditional economy
12
What is the product market?
households purchase goods and services that firms produce
income is received for supplying land, labor, or capital
payments received for selling products on the black market
firms purchase the factors of production from households
13
The free enterprise system of the US is
best
described as a
mixed economy with limited government intervention
mixed economy with much government intervention
traditional economy
pure free market economy
14
Which of these economic goals is most important in a traditional economy?
stability
growth
freedom
efficiency
15
Which of the following is NOT characteristic of a centrally planned economy?
Each collective or factory sets its own goals
each person is assigned a job
Government makes all economic decisions
Government owns all land and capital
16
The income people receive for supplying the factors of production
factor payments
low yield payments
income payments
high yield payments
17
Which of the following is NOT a key economic question?
Who consumes these goods and services?
How should these goods and services be produced?
What goods and services should be produced?
How should it be ensured that goods and service are paid for
18
What type of economy is shown in this figure?
mixed
command
socialist
market
19
When government taxes our wages in order to pay unemployment benefits it is taking away our
economic growth to control our own resources
economic security to control our own resources
economic equity to control our own resources
economic freedom to control our own resources
20
What incentive motivates a manufacturer to sell a product?
putting others out of business
popularity of the product
making profits on sales
pleasing the consumer
21
Allowing two companies like McDonalds and Burger King to both sell fast food is an example of
mixed economy
competition
profit motive
command economics
22
What is the motivating force of consumers in a free market economy?
specialization
the invisible hand
competition
self-interest
23
How a society answers the key economic questions primarily depends on
the underutilization of resources
how it combines factors of production
a society's goals and values
how many resources it has available
24
The state owns factors of production. Economic planning done by govt. Goals are security/equity
socialist economy
market economy
command economy
traditional economy
25
In the circular flow model, which of these is a factor payment?
the hourly wage a store pays its clerk
the check someone writes to buy groceries
the credit card charge for ordering games online
the monthly mortgage on a house
26
An entrepreneur with an innovative idea for a new business would be most successful in a
command economy
economy of scale
market economy
traditional economy
27
A person who believed in the doctrine of laissez faire would
disapprove
of
the invisible hand of the marketplace
self-interest as the motivating force in the free market
President Obama's plan to raise taxes on the rich
consumers spending $300 for a phone
28
Which of the following goals is difficult to achieve in a pure free market system?
growth
equity
efficiency
freedom
29
Laissez faire
government should control the marketplace
social/political philosophy where wealth fairly distributed
government should not intervene in the marketplace
economy moves from command to market
30
Which kind of economy is most common today?
market
traditional
command
mixed
31
Which economic goals are difficult to achieve in a pure market system?
innovation and security
equity and security
freedom and equity
efficiency and freedom
32
What does the process of specialization do for an economy?
it makes it more efficient
it fosters competition
it makes it easier to control
it eliminates unemployment
33
What is an important advantage of a free market?
it is easy to regulate
it does not change unless the government directs it
it offers a wide variety of goods and services
it protects the less fortunate
