Economics Chapter 2 preview/review

_____ describes the role of the consumer as ruler of the market.

What are the four important characteristics of a free enterprise economy.

A _____ does not increase even though prices go up.

Which is a weakness of a market economy?

Which is a strength of a market economy?

The driving force that encourages people and organizations to improve their material well being.

An economy in which a central authority makes most of the WHAT, HOW, and FOR WHOM decisions.

The act of buyers and sellers freely and willngly engaging in market transactions.

A rise in the general level of prices.

Which is a weakness of a traditional economy?

What is a strength of a market economy?

_____ is needed so that people can have more goods and services in the future.

____has made many modifications that affects or economy, such as the Social Security System and minimum wage laws.

The allocation of scarce resources & nearly all other economic activity, stems from ritual, habit, or custom.

Which is a weakness of a command economy?

Which is a weakness of a command economy?

The _____ organizes and manages land, labor, and capital in order to seek profits.

The concept that people have the right and privilege to control their possessions as they wish.

Economy in which people carry on their economic affairs freely but are subject to some govt. intervention & regulation.

People realize that resources are scarce and must be efficient when using them.

The struggle among sellers to attract consumers while lowering costs.

People place a high value on the freedom to make their own economic decisions.

In a _____ economy, competition is allowed to flourish with a minimum of government interference.

A system in which private citizens own the factors of production.

Which is a weakness of a market economy?

An organzied way of providing wants and needs of their people.

An economy in which people and firms act in their own best interests to answer the WHAT, HOW, and FOR WHOM questions.

Americans have a strong sense of justice, impartiality, and fairness, best describes ____.

What are the four roles of the government in a market economy?

Which is a strength of a traditional economy?