economics chapter 2

Socialism

Can be described as a more liberal version of a command economy

advantage of a traditional economy

Everyone knows exactly what their function is

Communist countries like north Korea and Cuba are examples of mixed economies

False

Mixed economies work to the degree that they embrace democray

False

solidarity

Independent polish labor union founded in 1980 by lech walesa

Keiretsu

Independently owned group of Japanese business firms united to regulate competition

disadvantage of a market economy

It sustains a high degree of uncertainty

Sweden moved to a mixed economy in the 1980s because

Its citizens objected to the nations high rate of taxation

present day sweden

Its unemployment rate and GDP per capita are relatively high

main difference between Japanese capitalism and US capitalism

Japans government is highly involved in day-to-day business management

Traditional economy

The way in which the 19th century inuit divided the "spoils of the hunt" demonstrates the functioning of a

accurate statement of a mixed economy today

There are more mixed economies in the world than any other kind

Mixed economies can evolve when societies with different kinds of economics interact

True

Socialist economies include aspects of both command and free-enterprise systems

True

There is always some degree of government involvement in a mixed economy

True

statement that BEST describes the communist ideals

a classless society in which everyone works for the common good

capitalism from south Korea's economic growth in the late 20th century

capitalism can restore a damaged economy

Gosplan

central planning authority in the former soviet union

In a _____________, questions of what. how, and for whom to produce are answered by the government

command economy

Singapore

country that made a successful transition to capitalism

what describes a move away from pure capitalism

economic reforms following the great depression in the united states

Perestroika

fundamental restructuring of the soviet economy, introduced by president Mikhail Gorbachev

GDP per capita

gross domestic product on a per person basis

In a _____________, questions of what, how, and for whom to produce are answered by buying and selling activity of individuals

market economy

command and socialist economies

offers uniformity in wages regardless of occupation or individual productivity

why people in a nation with command economy might resist a shift to a free market economy

people who hold power are threatened by systemic changes

who did Karl Marx believe would be the beneficiaries of socialism

workers

Statement that describes a disadvantage of a command economy

Nothing stops the government from producing things that people don't need or want

"There's no such thing as a free lunch" in a socialist economy

Socialist economies tend to offer extensive government services by having high taxes

scarcity

Societies embrace various economic systems to deal with the fundamental problem of