Economics 1

Adam Smith's "Invisible hand" refers the role of

the market

according to Adam Smith

a mixed economy combines all of the benefits of a command and a traditional economy

the attempt to balance an economic policy so that everyone benefits fairly is called

economic equity

market economy

economic system in which economic decisions are made by individuals rather than the government

command economy

economic system in which economic decisions are made by the government

In a system of pure competition, the role of the government is to control prices in the market place

false

This cartoonist would like government to

interfere with business less

another term for a capitalist system is a

market system

which country has a command economy

north korea

production decisions involve weighing the ________ of producing one product rather than another

opportunity cost

competition

rivalry among producers to win business

in a world of scarcity, achieving national goals requires trade-offs

true

the desire to make money, called the profit incentive, motivates people to produce and sell goods and services.

true

a major characteristic of a pure market economy is

unrestricted competetion