Ch 2 review economic

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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


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