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2 Economic Systems Flashcards | StudBud
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2 Economic Systems
2 Economic Systems
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Economic systems
Flashcards
20 cards
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Questions
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Answers
1
In a command economy, producers of goods and services make decisions primarily based on
past customs & production methods
current profit potential
marketplace signals
government planning
2
Almost all economic systems today are
command economies
traditional economies
mixed economies
pure market economies
3
The basic issues that every nation's economic system addresses include the following EXCEPT
What goods and services should be produced?
How can goods and services be fairly distributed?
Who will receive the goods and services that are produced?
How shall resources be used to produce goods and services?
4
What does Adam Smith’s idea of an “invisible hand” represent?
the divine oversight of human affairs
the economic role of governments
the way that markets coordinate trade
the concern of people for one another
5
Who came up with the idea of the Invisible Hand?
John Maynard Keynes
Adam Smith
Karl Marx
Milton Friedman
6
The major types of economic systems are
traditional, capitailist, market, & mixed
command, socialist, communist, & mixed
socialist, communist, free enterprise, & capitalist
traditional, command, market, & mixed
7
What economic system is completely controlled by a central authority, usually the government?
Market Economy
Mixed Economy
traditional Economy
Command Economy
8
Which is defined as the way in which a nation uses its resources to satisfy its needs & wants?
Market economy
Economic system
Command economy
Mixed economy
9
Which of the following is NOT a major characteristic of a pure market economic system?
freedom of choice
little or no government control
lack of competition
freedom of enterprise
10
What is one of the two economic systems that combine to create a mixed economy?
Command Economy
Market Economy
Free Market
Traditional Economy
11
What economic system is completely controlled by individuals and private companies?
Mixed Economy
Market Economy
Command Economy
Traditional Economy
12
Which of the following is NOT a basic economic question?
Why should we produce it?
What to produce?
For whom should we produce it?
How to produce it?
13
The government has the greatest degree of involvement in which of the following?
market economy
traditional economy
command economy
laissez-faire economy
14
Who developed the theories of Communism
Vladimir Lenin
Karl Marx
Groucho Marx
Adam Smith
15
What is a system where government controls important resources & leaves the rest to the market?
Free Market
Communism
Capitalism
Socialism
16
What is a system in which government controls all resources & distributes them to the people?
Capitalism
Communism
Socialism
Free Market
17
Economic system that answers the basic economic questions according to societal customs?
market economy
mixed economy
traditional economy
command economy
18
The major types of economic systems are
traditional, capitailist, market, & mixed
socialist, communist, free enterprise, & capitalist
command, socialist, communist, & mixed
traditional, command, market, & mixed
19
What economic system relies heavily on customs of the group to make decisions?
Market Economy
Traditional Economy
Command Economy
Mixed Economy
20
Where would you find the purest Free Markets
China
United States
Hong Kong
Russia
