Civics chapter 2 review
Workers will lose their job and guaranteed incomes.
A country is changing from a centrally planned economy to a free market economy. What will be the difficulties of citizens living there?
A socialist
A person who believes that wealth should be evenly distributed throughout society is
The government controls the centers of economic power
A socialist believes that wealth should be spread evenly throughout society. What characteristic is designed to achieve this goal
some free market practices can combine with central economic planning.
A socialist society has a more flexible command economy than a communist society because
Equity
A town votes to raise taxes on its households and businesses in order to renovate a school in one of its poorest neighborhoods. What societal goal best explains this decision?
Traditional economy
An economy in which all the boys become farmers when they are adults, just as their fathers and grandfathers did, would be an example of a
its unique combination of values and goals.
Each society answers the three basic economic questions based on
mixed, but more centrally planned
How could the Chinese economy be characterized?
The government discouraged competition by determining prices, wages, and products.
How did heavy industry in the Soviet Union avoid the competition that drives a free market economy?
Soviet planners shifted resources to it.
How did heavy industry in the Soviet Union grow so quickly?
by its distribution of income
How does a society determine who will get what is produced?
It pays wages to government employees.
How is the U.S. government involved in the factor market?
The negative incentive will cause consumers to purchase less of the good or service.
How will consumers react to the incentive of a higher price on a good or service?
Centrally planned
In what kind of an economy does the government make all the decisions?
Economic growth
Innovation often leads to which economic goal?
based on a free market, but allowing some government intervention.
The United States economy is a mixed economy
The greater amount of government involvement in a mixed economy
The main difference between a mixed economy and a free market economy
China is privatizing state-run businesses.
The main difference between the economies of China and North Korea is that
Competition
What "invisible hand" directs the free market?
Central planning
What did communists revolutions lead to in China and the Soviet Union
Land, labor, capitol
What do people supply in return for factor payments?
Consumers have the power to decide what gets produced
What does consumer sovereignty mean in a free market economy?
Customers have the power to decide what gets produced.
What does the expression "the customer is king" mean in a free market economy?
It makes production more efficient.
What does the process of specialization do for an economy?
It encourages growth
What is one important advantage to a free market?
the market in which households purchase the goods and services that firms produce
What is the product market?
Workers would lose job security and guaranteed incomes.
What might be a hardship for citizens of a centrally planned economy making a transition to a free market economy?
communism and central planning
What two systems were linked in the Soviet Union and China?
Fewer consumer goods were produced.
What was the trade-off of the Soviet Union's focus on heavy industry?
Economic security
When the government provides a safety net, which economic goal is it meeting ?
in small communities that avoid change
Where are traditional economies usually found?
It revolves around a family unit
Which if the following is a characteristic of a traditional economy?
It revolves around the family unit.
Which of the following is a characteristic of a traditional economy?
What goods and services should be produced, how, and for whom?
Which of the following is a summary of the basic economic questions?
What goods and services should be produced, how, and for whom?
Which of the following is a summary of the three key economic questions?
The central government makes all economic decisions.
Which of the following is characteristic of a centrally planned economy?
authoritarian government
Which of the following is part of communism but not socialism?
Making profits on sales
Which of the following is the main incentive for a manufacturer to sell a product?
making profits on sales
Which of the following is the main incentive for a manufacturer to sell a product?
Unemployment compensation
Which of the following might a government provide as part of a safety net for citizens?
Unemployment compensation
Which of the following might a government provide as part of a safety net for the people?
low unemployment due to guaranteed jobs
Which of the following might be a positive aspect of centrally planned economies?
Adam smith
Which of the following philosophers argued that a free market would regulate itself with little government involvement?
Households
Who owns the factors of production?
Competition encourages innovation, which causes growth.
Why are free market economies able to attain economic growth?
Economic freedom
Working where we want to is an example of which economic goal?