Why might people in a command economy resist a shift to a free market economy?

Dictators & bureaucrats are threatened by fundamental change

How are economic transactions determined in a traditional economy?

elders make sure things are done based on custom

Which describes a move away from capitalism?

taking over of major industries by the gov't of Venezuela

What's one of the benefits to economic equity?

receiving equal pay for equal work

Which of these could raise the cost of production in a command economy?

an inefficient bureaucracy that makes it hard to do business

Order these economic systems from least free to most free.

command, socialist, free market

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Economics Ch 2-3 Review

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A review of the types of economic systems with focus on our American Modified Free Enterprise or Mixed economy.

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Questions 15

Answers

1
Consumers in a free enterprise economy ultimately determine ________ to produce.
how
when
where
what
2
Why might people in a command economy resist a shift to a free market economy?
Dictators & bureaucrats are threatened by fundamental change
Workers are reluctant to give up their classless society.
Businessowners are reluctant to give their capital toworkers
Workersare reluctant to accept govt control of their economy
3
How are economic transactions determined in a traditional economy?
the 3 basic questions don't arise in this type of economy
individuals form networks to buy & sell as they choose
community decides as a group for whom it will produce
elders make sure things are done based on custom
4
Which describes a move away from capitalism?
transformation of Soviet Union to today's Russia
taking over of major industries by the gov't of Venezuela
Sweden's cutback on social programs.
economic reforms following the Great Depression
5
What's the name of the federal retirement program for senior citizens?
Social Care
Medicaid
Social Security
Medicare
6
Who or what does the modification in a modified free enterprise economy?
government
entrepreneurs
businesses
consumers
7
What protects consumers from harm by products on the market?
government regulations
franchises
profit motives
private property rights
8
Who has sovereignty over a free market?
entrepreneurs
government
businesses
consumers
9
What's one of the benefits to economic equity?
receiving equal pay for equal work
living on a fixed income
unemployment compensation programs
conserving resources
10
Which country is an example of a capitalist economy?
Cuba
Singapore
Venezuela
North Korea
11
Who did Karl Marx believe would be the beneficiaries of socialism?
the capitalists
the government
the property owners
the workers
12
Which type of economy is most prevalent in the world today?
command
market
mixed
traditonal
13
Which of these could raise the cost of production in a command economy?
newly discovered source of raw materials
an inefficient bureaucracy that makes it hard to do business
strict quota system
free media
14
Order these economic systems from least free to most free.
free market, command, socialist
command, socialist, free market
socialist, command, free market
free market, socialist, command
15
What command economy went from an agricultural society to industrial nation rapidly?
former Soviet Union
China
North Korea
Japan

Economics Ch 2-3 Review Flashcards | StudBud