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Which of the following was a free market philosopher? |
Adam Smith |
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Which of the following is a condition that most people would NOT expect the safety net of the government to provide for? |
low income |
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Which of the following is NOT characteristic of a centrally planned economy? |
each collective or factory sets its own goals |
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What is one of the most important advantages of a free market? |
it encourages growth |
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What is the struggle among varioud producers for the consumer’s business called? |
competition |
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How could the Chinese economy be characterized? |
mixed, but on the side of centrally planned |
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Why does even a free market economy need some government intervention? |
to provide for things that the marketplace does not address |
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Which of the following is NOT a key economic question? |
How should it be ensured that goods and services are paid for? |
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What is an important advantage of a free market? |
if offers a wide variety of goods and services |
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What does the process of specialization do for an economy? |
it makes it more efficient |
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What incentive motivates a manufacturer to sell a product? |
making profits on sales |
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Which of the following is characteristic of a traditional economy? |
Children tend to have the same jobs as their parents did |
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What is the product market? |
the market in which households purchase the goods and services that firms produce |
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What incentive do manufacturers have to sell their products? |
making profits on sales |
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In what kind of an economy does the government make all the decisions? |
centrally planned |
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What is the purpose of competition? |
to act as a regulating force in the marketplace |
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What is the function of an economic system? |
to produce and distribute goods and services |
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How would the economy of Canada be likely to be characterized? |
mixed, but on the side of free market |
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Who was the leader that introduced communism and central planning to the former Soviet Union? |
Vladimir Lenin |
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Which of the following was a free market philosopher who was associated with limited government, laissez-faire, the invisible hand and is also known as the "Father of Economics"? |
Adam Smith |
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______ is the doctine that states that government generally should not intervene in the marketplace |
Laissez-faire |
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a political system characterized by a centrally planned economy with all economic and political power resting in the hands of the central government is called |
communism |
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an expectation that ecourages people to behave in a certain ways is called |
an incentive |
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the struggle among producers for the dollars of consumers is called |
competition |
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an economic system in which the central government makes all decisions on the production and consumption of goods and services is called |
centrally planned economy |
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government programs that protext people experiencing unfavorable economic conditions is called |
a safety net |
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the passion that inspires a person to serve his or her country is called |
patriotism |
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term economists use to describe the self- regulating nature of the marketplace is |
the invisible hand |
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a range with no clear divisions is called |
a continuum |
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the concentration of the productive efforts of individuals and firms on a limited number of activities is called |
specialization |
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the financial gain made in a transaction is called |
profit |
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a social and political philosophy based on the beleif that democratic means should be used to evenly distribute wealth throughout a society is called |
socialism |
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____ means requiring strict obedience to an authority, such as a dictator |
authoritarian |
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an arrangement that allows buyers and sellers to exchange things is called a |
market |
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a person or gorup of people living in the same residence is called a |
household |
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an economic system that relies on habit, custom, or ritual to decide questions of production and consumption of goods and serives is called a |
traditional economy |
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an economic system characterized by private or corporate ownership of capital goods; investments that are determined by private decision rather than by state control; and determined in a free market is called |
free enterprise |
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the method used by a society to produce and distribute goods and services is called |
an economic system |
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an industry that requires a large capital investment and that produces items used in other industries is called |
heavy industry |
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An economic system in which a central authority is in command of the economy is called a |
Command economy |
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The level of economic prosperity is called |
The standard of living |
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An economic system in which decisions on production and consumption of goods and services are based on voluntary exchange in markets is called a |
Market economy |
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A ______ is a large farm that is leased from the state to groups of peasant farmers |
Collective |
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Ones own personal gain is called |
Self-interest |
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Property owned by individuals or companies, not by the government or the people as a whole is called |
Private property |
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The income people receive for supplying factors of production such as land, labor or capital is called |
Factor payments |
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A market-based economic system with limited government involvement is called a |
Mixed economy |
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The market in which households purchase the goods and services that firms produce is called the |
Product market |
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Market in which firms purchase the factors of production from households is called the |
Factor market |
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An organization that uses resources to produce a product which then sells is called a |
Firm |
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The power of consumers to decide what gets produced is called |
Consumer sovereignty |
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Selling state-run firms to individuals is called |
Privatization |
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