Chapter 2 - Economic Systems & the Circular Flow

Question 1

In this system prices are determined through the interaction of supply and demand

Accepted Answer

market

Question 2

This incentive is what drives people to produce in a market economy:

Accepted Answer

profit motive

Question 3

A person would find the largest amount of consumer goods in this type of system:

Accepted Answer

market

Question 4

The 2 groups that interact in a pure market economy are:

Accepted Answer

households and businesses

Question 5

These are all examples of a command system EXCEPT:

Accepted Answer

Amish society

Question 6

The 3 economic questions that all societies/systems must answer are:

Accepted Answer

what, how, and for whom to produce goods?

Question 7

This is the most prevalent type of system found throughout the world:

Accepted Answer

mixed

Question 8

The environment plays a large role in this economic system

Accepted Answer

traditional

Question 9

The government decides what will be produced in this type of system:

Accepted Answer

command

Question 10

Resources are exchanged for money in this part of the circular flow of the economy:

Accepted Answer

factor market

Question 11

This market is where finished goods and services are exchanged for money

Accepted Answer

product

Question 12

Everyone in this system would have a lot of safety nets such as job security

Accepted Answer

command

Question 13

All of these are synonyms for a (mixed)-market economy EXCEPT:

Accepted Answer

centrally planned

Question 14

These items are being moved throughout the circular flow of the economy:

Accepted Answer

money, resources, and goods and services

Question 15

A command economic system is also know as this:

Accepted Answer

centrally planned system

Question 16

This system combines elements of tradition, command, and market:

Accepted Answer

mixed system

Question 17

What would be the correct order of countries going from command to mixed to market system?

Accepted Answer

India - US - Hong Kong

Question 18

Adding this group changes the economy from a pure market to a mixed:

Accepted Answer

government

Question 19

You will work at the same job as your ancestors did in this type of system:

Accepted Answer

traditional

Question 20

Households are the ________ in the resource market

Accepted Answer

sellers

Question 21

In the circular flow, households and businesses are both buyers and sellers

Accepted Answer

true

Question 22

All of the following are examples of a traditional system EXCEPT:

Accepted Answer

large scale manufacturing

Question 23

All of the following are economic goals for countries EXCEPT:

Accepted Answer

ineffiency

Question 24

A pure market economic system offers the most:

Accepted Answer

freedom

Question 25

In this system there are no safety nets - if you don't work, you don't eat!

Accepted Answer

market

Chapter 2 - Economic Systems & the Circular Flow

Questions 25

Chapter 2 - Economic Systems & the Circular Flow

Questions 25