Economics Chapter 2

What conclusion can be drawn about capitalism from South Korea's economic growth in the late 20th century?

Capitalism can restore a damaged economy.

Which of the following states an advantage of a traditional economy?

Everyone knows exactly what their function is.

mixed economies work to the degree that they embrace democracy

False

Gross domestic product on a per person basis

GDP per capita

central planning authority in the former Soviet Union

Gosplan

Which of the following is a disadvantage of a market economy

It sustains a high degree of uncertainty

Which of these statements apply to present-day Sweden?

Its unemployment rate and GDP per capita are relatively high.

What is the main difference between Japanese capitalism and capitalism in the United States?

Japan's government is highly involved in day-to-day business management.

Which statement describes why the people in a nation with a command economy might resist a shift to a free market economy?

People who hold political power are threatened by fundamental changes.

Which country is an example of a capitalist country?

Singapore

How is the principle of "There's No Such Thing As A Free Lunch" illustrated in a socialist economy?

Socialist economies tend to offer extensive government services but have high tax rates.

independent Polish labor union founded in 1980 by Lech Walesa

Solidarity

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

True

Which of the statements best describes the communist ideal?

a classless society in which everyone works for the common good

in a ... economy, production questions are answered by the government

command

What kind of economy offers uniformity in wages regardless of individual productivity

command and socialist economies

communist countries like North Korea and Cuba are examples of mixed economies

false

Why did Sweden move from socialism to a more mixed economy in the 1980s?

its citizens objected to the nation's high rate of taxation

independent owned group of Japanese business firms united to regulate competition

keiretsu

​In a _ economy, questions of what, how, and for whom to produce are answered by the buying and selling activity of individuals.

market or free enterprise

​Which statement describes a disadvantage of a command economy?

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

fundamental restructuring of the Soviet economy, introduced by President Mikhail Gorbachev

perestroika

Societies embrace various economic systems to deal with the problem of

scarcity

_ is a system in which the government owns and controls some, but not all, productive resources

socialism

Which of the following describes a move away from capitalism?

the nationalization of major industries in Hugo Chavez's Venezuela

which of these is an accurate statement about mixed economies today?

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

The way the 19th-century Inuit divided the "spoils of the hunt" demonstrates a _ economy.

traditional

mixed economies can evolve when societies with different kinds of economies interact.

true

socialist economies include aspect of both command and free-enterprise systems

true

Who did Karl Marx believe would be the beneficiaries of socialism?

workers