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Rewanomics Rewaview - Economic Systems Flashcards | StudBud
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Rewanomics Rewaview - Economic Systems
Rewanomics Rewaview - Economic Systems
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Economics Review for Chapter 2: Economic Systems #rewa #portage #economicsystems #economic
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Questions
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Answers
1
What is the function of an economic system?
to give all producers the same access to consumers
To make sure all people have equal access to goods
to produce and distribute goods/services
to make sure people are paid for their labor
2
What could be a hardship for citizens of a transitioning country?
Workers would lose job security and guaranteed incomes
Farmers would have to grow what the gov't said
Poor quality goods available, quantity>quality
Entrepreneurs would have fewer opportunities
3
Why do markets exist?
provide self-sufficient people with places to exchange ideas
allow people to buy what they need and sell what they make
ensure economic equity for all people
Ensure the gov't doesn't intervene in production
4
A person who believed in laissez faire would disapprove of ___.
the invisible hand of the marketplace
self-interest as the motivating force in the free market
government funding of education
consumer sovereignty
5
Which goal is hard to achieve in a pure free market system?
Economic efficiency
economic equity
economic freedom
economic growth
6
Which is a condition that most people would NOT expect the safety net to provide for?
Joblessness
Low Income
Natural Disasters
Injuries
7
Which of the following was a free market philosopher?
Karl Marx
Vladimir Lenin
Adam Smith
Friedrich Engels
8
Expectation that encourages people to behave in a certain way
Standard of Living
Collective
Incentive
Free Enterprise
9
What is the motivating force behind the free market?
Specialization
Self-Interest
Competition
the Invisible Hand
10
China's economy is in transition. What does this mean?
Gov't rarely interferes with the free market
Investments are determined by state control
Economy is moving from Controlled to Free Market
Individual firms are being sold to the state
11
Democratic means should be used to distribute wealth evenly throughout a society
Authoritarianism
Capitalism
Socialism
Communism
12
What is the purpose of competition?
to cause buyers to be careful about spending money
to cause producers to try to put each other out of business
to act as a regulating force in the marketplace
to act as a motivating force behind the free market
13
In which list of mixed economies does the market system dominate?
Cuba, Greece, China, US
France, Canada, South Africa, UK
Russia, Peru, France, Canada
US, UK, Singapore, Hong Kong
14
Which of the following is NOT a key economic question?
What goods and services should be produced?
Who consumes these goods and services?
How should these goods and services be produced?
How should it be ensured that goods/services are paid for
15
Which does the gov't provide as part of a safety net for the people?
General elections every 4 years
regulation commerce
a strong military defense
unemployment compensation
16
What is one of the most important advantages of a free market?
it is easy to regulate
It protects the less fortunate
It can change rapidly
it encourages growth
17
In what kind of economy does the government make all the decisions?
Free Market
Mixed
Socialist
Centrally Planned
18
Why does even a free market economy need some government intervention?
to provide for things that the marketplace does not address
make sure the gov't can fulfill its needs for military
ensure the gov't has freedom to tax as necessary
so the gov't has some control over factor resources
19
What does the process of specialization do for an economy?
it makes it easier to control
it fosters competition
it makes it more efficient
It eliminates unemployment
20
How would the economy of Canada likely be characterized?
Free Market
Centrally Planned
Mixed, but on the side of Centrally Planned
Mixed, but on the side of Free Market
21
What is an important advantage of a free market?
It protects the less fortunate
It is easy to regulate
It doesn't change unless the gov't directs it
it offers a wide variety of goods/services
22
Which is NOT a weakness of Centrally Planned Economies?
Consumers' needs are not met
Most workers lack job security
Individual freedoms are sacrificed for societal goals
Workers lack incentives to be innovative
23
What is the product market?
where payments are received for selling stuff to consumers
where firms buy factors of production from households
where households buy goods/services that firms make
Where income is received for supplying land/labor/capital
24
Who was the leader that introduced communism and central planning to the former Soviet Union?
Friedrich Engels
Karl Marx
Vladimir Lenin
Joseph Stalin
25
You are an entrepreneur with an idea for a business. In which economy would you do best?
Command
Market
Traditional
Economy of Scale
26
Households pay firms for goods/services. This takes place in the _____ market.
Factor
Traditional
Product
After
27
Level of economic prosperity
Communism
Standard of living
GDP
Self-Interest
28
How could the Chinese economy be characterized?
Free market
Centrally planned
Mixed, but on the side of centrally planned
Mixed, but on the side of free market
29
Which of the following is NOT characteristic of a centrally planned economy?
Central Gov't makes all economic decisions
Central gov't owns all land and capital
Each collective or factory sets its own goals
Each person is assigned a job
30
To sell a state-run firm to individuals
Safety Net
Localize
Collective
Privatize
31
Gov't prints posters to inspire workers to be more productive. Which type of economy?
Weak economy
Traditional Economy
Market economy
Centrally Planned Economy
32
What incentive motivates a manufacturer to sell a product?
putting others out of business
popularity of the product
pleasing the consumer
Making profits on sales
33
Which of the following is characteristic of a traditional economy?
They are usually based on light industrial work
Children tend to have the same jobs as their parents
Communities tend to be fast-growing
They have a high standard of living
34
What is the struggle among various producers for the consumer's business called?
self-regulation
competition
socialism
incentive
35
Who wrote the
Communist Manifesto?
Karl Marx
Joseph Stalin
Ben Franklin
Adam Smith
36
Why were collectives in the Soviet Union inefficient?
Farms were too small
Planners ignored farms in favor of making consumer goods
Guaranteed income and few incentives to produce more
Farmers had to pay for tools/supplies themselves
