Economics Basics

Self-interest guides a market to self-regulate in the best interest of the business and society.

____________ is one of the disadvantages of centrally planned system.

What is the main problem with the five economic goals?

A measure of economic prosperity in a society.

Programs to protect people who face unfavorable economic conditions such as layoffs, injuries?

Mixed economies gained the benefits of economic growth and _______________ by adding free market principles.

Economic system that has some market-based elements and some government involvement.

What is benefit of specialization?

The structure of methods and principles a society uses to produce and distribute goods and services.

Which is not a basic economic question?

Operates in contrast to free market systems and opposes private property, free markets, competition?

_______________ is the father of economics and author of The Wealth of Nations.

The United States is a free market system.

The amount of money a business receives in excess of its expenses.

In a centrally planned economy the individual producer and consumers answers the economic questions

The government rather than the individual producers and consumers answer the three basic economic questions.

What are two things that guide a business to self-regulate through the invisible hand?

Doctrine that government generally should not intervene in the market place.

A nation's economy must grow with its population so it can provide jobs for the new people joining the workforce.

What is one of the roles of the government in the U.S. economy?

Organization that uses resources to produce a product or service, which it then sells.

Socialism and Communism both share the characteristic of a centralized control of economic power.

What are the five economic goals?

In a ______________, answers to the three basic economic questions are made by voluntary exchange in the market.

Governments limit individual freedoms and require strict obedience from their citizens.

What is the role of government in the factor market?

Command economies oppose:

What is the role of the government in the product market?

Which of the following is a characteristic unique to socialism?

Efficiency gives people the opportunity to make their own choices.

What is the fundamental economic problem all societies face and forces societies to make choices?

Increasing efficiency in the use of capital, land, and resources is a benefit of specialization in the economy. 

The United States is a free market system.

The even distribution of wealth is not a characteristic of communism.

Property owned by individuals or companies and not by the government or the people as a whole.

Selling enterprises operated by the government to individuals is known as: