Duplicate of Chapter 2: Economic systems

True or False:  The United States of America has a mixed economy.  

Things other than basic needs are referred as 

Rivalry among producers & sellers to win business by offering the lowest prices is

Activities done for a fee are called

Social/political belief that democratic means are used to distribute wealth equally in society.

True or False:  Cuba & North Korea have a command economy and a communist government.

Political system with centrally planned economy, all power is held by the government.

Centrally planned economy, planners own factors of production & make all economic decisions. 

This is where buyers and sellers enter into voluntary exchange.  Can be anywhere.  

True or False:  Private property is property that is owned by people/companies not government 

Most countries in the world today have this type of economy:

Communist governments have used this power to control their citizens through strict obedience.

Innovation and efficiency which leads to a bigger economy & higher living standards for people.

Market based economy plus government intervention allows for choice in markets and equity. 

Economic system that relies on customs & rituals to answer basic questions.  

System with no government intervention, people own factors & make their own choices in markets.

True or False:  China has a pure market economy.

Making the most efficient use of resources so that there are resources available in the future.

Rivalry among businesses to get more customers and higher profits.  

Freedom from government intervention; allows people to make their own choices.

What drives people into business, what encourages people to act in a certain way.  

The resources of land, labor, capital, and entrepreneurship are together called

The Basic Problem in Economics is

Food, clothing, shelter, education - constitue people's

This is the method used by a society to produce and distribute goods and services.

Your interests, looking out for number one, doing things that benefit you individually.

True or false: The Soviet Union had rampant corruption, financial problems & chronic shortages.

The financial gain made in a transaction, money left over after all costs are paid.