chapter 2 review
Communist countries like North Korea and Cuba are examples of mixed economies.
False
Mixed economies work to the degree that they embrace democracy.
False
Which of the following is a disadvantage of a market economy?
It sustains a high degree of uncertainty.
There is always some degree of government involvement in a mixed economy.
True
Who did Karl Marx believe would be the beneficiaries of socialism?
Workers
Which of the statements best describes the communist ideal?
a classless society in which everyone works for the common good
Forced common ownership of factors of production is referred to as ____________.
collectivization
In a __________ economy, production questions are answered by the government.
command
An economic and political system in which factors of production are owned and directed by the state is called _____________.
communism
How are economic transactions shaped in a traditional economy?
Elders and ancestors make certain things are done in specific ways.
Which of the following states an advantage of a traditional economy?
Everyone knows exactly what their function is.
Which statement describes a disadvantage of a command economy?
Nothing stops the government from producing things that people don't need or want.
Mixed economies can evolve when societies with different kinds of economies interact.
True
Three questions all economies must answer about goods and services are _________, How, and For Whom to produce.
What
In a __________ economy, questions of what, how, and for whom to produce are answered by the buying and selling activity of individuals.
market
In a _____________ economy, governments sometimes intervene in the day to day interactions of buyers and sellers, but most decisions are made by observing supply and demand.
mixed
Societies embrace various economic systems to deal with the fundamental problem of __________.
scarcity
What kind of economy offers uniformity in wages regardless of individual productivity?
command and socialist economies
