Ch 2 review economic
In a a central authority makes most of the WHAT, HOW, and For WHO decisions.
Command economy
Capitalism benefits consumers because. Keeps prices low.
Competion
In a traditional economy, people's roles are determined by the. Of their elders and ancestors.
Constumes
In the United States the customers control of the market is called
Consumer soverenity
Which group of people ultimately determines the products that a free enterprise economy produces?
Consumers
A market economy
Does not provide for everyone's basic needs.
The minimum wage is an example of a federal law that supports
Economic equity
The way in which a society provides for the wants and needs of it's people determines the type of It has.
Economic system
Which of the following is NOT considered an economic and social goal?
Entrepreneurship
The profit motive states that the consumer decides WHAT goods and services to produce.
False
Voluntary exchange is a characteristic of command economies.
False
Political elections are one method of resolving conflicts among economic
Goals
A rise in the general level of prices is called
Inflation
Economic equity
Is an economic goal that is based on a sense of fairness.
Economic growth
Is necessary to meet the needs of a growing population by providing more goods and services.
Of the following are characteristics of a command economy EXCEPT.
It is not designed to meet the wants of consumers.
The purpose of government in a command economy is to
Make major economic decisions.
One disadvantage of a. Economy is the high degree of uncertainty that businesses and workers face as the result of change.
Market
People and companies make most of the WHAT, HOW, and FOR WHOM decisions in a
Market economy
The United States can best be described as having a
Modified private enterprise system.
The concept of voluntary exchange means?
People freely and willingly engage in market transactions.
In a free enterprise system, people who risk their savings to gain wealth are doing it because of the
Profit Motive
The government's role in a mixed economy is that it is the
Regulator charged with preserving competition.
One strength of a market economy is the high degree of consumer is?
Satisfaction
Social security is a federal program that addresses the goal of economic
Security
An example of a market economy is
The United States
In the former soviet unions command economy, made the major economic decisions
The government
Capitalism is a competitive economic system in which private citizens own the factors of production
True
The United States has a modified private enterprise economy.
True
The entrepreneur organizes land, capital, and labor for production in hopes of earning a profit.
True
When buyers and sellers make a both parties are better off.
Voluntary exchange
