that people’s actions are led by “an invisible hand.”

Globalization began to occur

in the mid-1800s to the late 1920s.

Resources are owned and controlled by private individuals in what type of economic system?

a free enterprise or market economic system

Globalization leads to

closer connections between countries through trade.

Critics of globalization argue that

large corporations will take over.

expanded everyone’s ability to sell to more people.

work done by a company by people who live in another country

In a socialist economic system, the government

owns and controls many of the resources.

a particular type of socialist economic system.

In a traditional economy, peoples

customs, skills, and cultural beliefs are pass on

Income distribution refers to

way country’s income is divided among groups of earners.

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Econ Chapter 2 Economic Systems and the Global Economy

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Answers

1
Adam Smith believed
that surplus value should go to the workers.
that capitalists exploited workers.
that people’s actions are led by “an invisible hand.”
in the labor theory of value.
2
How a society answers the three economic questions defines
its economic system.
its income distribution.
its place in the global economy.
whether it is a pure or mixed economy.
3
Which of the following countries must decide what goods will be produced?
China
United States
Russia
All of the above
4
Globalization began to occur
during World War I.
in the mid-1800s to the late 1920s.
two decades ago.
during the Great Depression.
5
Karl Marx is best known for writing
War and Peace.
Das Kapital.
Globalization Facts.
The Wealth of Nations.
6
There is a strong correlation between globalization and
American job growth.
life expectancy.
international debt.
income equality.
7
Which of the following is not one of the three economic questions?
How much will be produced?
How will the goods be produced?
For whom will the goods be produced?
What goods will be produced?
8
The question of what goods will be produced must be answered because
command economies need to write a plan.
consumers would like to have these goods.
scarcity exists.
some countries are poor and must choose what to produce.
9
Resources are owned and controlled by private individuals in what type of economic system?
a traditional economic system
a free enterprise or market economic system
a socialist economic system
a communist economic system
10
According to this textbook, there is a strong relationship between life expectancy and
globalization.
outsourcing.
climate.
government control.
11
With globalization, the world is moving toward
50 dominant economies.
three powerful economies.
10 major economies.
one large economy.
12
The major differences between free enterprise and socialism include
economic planning and income distribution.
All of the above
ownership of resources and the government’s role
controlling prices and honoring private property.
13
Globalization leads to
spread of socialism in the world.
increased interest rates.
closer connections between countries through trade.
increased tension between foreign countries.
14
Critics of globalization argue that
technology will lag.
tariff rates will increase.
large corporations will take over.
trade will increase too rapidly.
15
Globalization has
expanded everyone’s ability to sell to more people.
decreased people’s ability to communicate.
reduced the variety of products available in the world.
raised prices for consumers.
16
Offshoring refers to
work done by a company by people who live in another country
work done by people other than the company’s employees.
work done by dock workers.
work done by foreigners in their own country.
17
In a socialist economic system, the government
rents resources to the people.
pays little attention to income distribution.
owns and controls many of the resources.
owns and controls the people.
18
The two major economic systems are
socialism and command.
free enterprise and capitalism.
free enterprise and socialism.
free enterprise and command.
19
A command economy is
like capitalism.
not concerned by the three economic questions.
run by individuals and businesses.
a particular type of socialist economic system.
20
In a traditional economy, peoples
set prices based on the labor theory of value.
have a mix of free enterprise and socialism.
write very detailed economic plans for the future.
customs, skills, and cultural beliefs are pass on
21
Income distribution refers to
earnings of corporations.
way country’s income is divided among groups of earners.
welfare payments to the poor.
average income per person.

Econ Chapter 2 Economic Systems and the Global Economy Flashcards | StudBud