Ch.2: Economic Systems and American Economy

Question 1

All economic systems must answer these 3 questions

Accepted Answer

What, How, Whom

Question 2

What motivates people to start a new business or expand an existing one?

Accepted Answer

profit incentive

Question 3

The following deal with a system in which individuals own the factors of production EXCEPT

Accepted Answer

command system

Question 4

A law dealing with workers compensation helps provide citizens.

Accepted Answer

economic security

Question 5

The attempt to balance an economic policy so that everyone benefits fairly.

Accepted Answer

economic equity

Question 6

System in which the government operates the factors of production

Accepted Answer

command

Question 7

Allowing each member of society to make choices is the goal of

Accepted Answer

economic freedom

Question 8

System in which the government has a "hands off" policy on economic matters.

Accepted Answer

laissez-faire system

Question 9

System in which economic decisions are based on customs and beliefs handed down

Accepted Answer

traditional

Question 10

It would be easiest to start a sporting goods store business in this type system.

Accepted Answer

free enterprise

Question 11

The expansion of the economy to produce more jobs, goods, and wealth.

Accepted Answer

economic growth

Question 12

Whatever is owned by individuals rather than government

Accepted Answer

private property

Question 13

Which type of economy allows the government to re-route resources easily?

Accepted Answer

Command

Question 14

Competition forces businesses to

Accepted Answer

keep prices low

Question 15

Money left over after the cost of production have been paid

Accepted Answer

profit

Question 16

When the benefits of an economic decision exceeds the costs

Accepted Answer

economic efficiency increases

Question 17

A capitalist system is a

Accepted Answer

market economy

Question 18

Today the vast majority of economic systems are

Accepted Answer

mixed

Question 19

Who owns the factors of production in a market system?

Accepted Answer

individuals

Question 20

Rivalry among producers or sellers of similar goods and services to win more business.

Accepted Answer

competition

Question 21

In a free enterprise system, who makes the decision about what should be produced?

Accepted Answer

buyers

Question 22

The goal of economic stability would be to reduce extreme ups and downs in the

Accepted Answer

standard of living

Question 23

A society of New Guinea natives would have this type economic system

Accepted Answer

traditional

Ch.2: Economic Systems and American Economy

Questions 23

Ch.2: Economic Systems and American Economy

Questions 23