econ ch. 2

Question 0

taditional advantages

Answer 0

capable of dramatic change in short period of time

and many basic education , public health and other public services available at little or no cost

Question 1

traditional economies

Answer 1

inuits are example it is the allocation of scarce resources and nearly all other eco nomic activity, s tems from rituals, habits, or custom

Question 2

traditiona advantages

Answer 2

• sets forth certain economic rules for all members of the community
• stable,predictable,a nd continuous life

Question 3

market advntages

Answer 3

• able to adjust to change in life gradually
• every has individual freedom
• limited government
• decenteralized desicion making
• incredible variety of goods and services
• high degree of consumer satisfaction

Question 4

command disadvatages

Answer 4

• doesn’t meet wants and needs of consumers
• lack effective incentives to get people to work
• requires large bureaucracy, consuming resources
• little flexibility only day to day changes
• no individuality or new ideas discouraged

Question 5

traditional disadvantages

Answer 5

• discourage new ideas and ways of doing things
• stagnation and lack of progress
• lower standard of living

Question 6

market disadvantages

Answer 6

• only rewards productive and not not for people to young or old
• competition creates uncertainty for business men
• doesn’t produce enough public goods like health care and universal education
• must guard against market failure

Question 7

economy/economic sytem

Answer 7

an organized way of providing wants and needs of their people

Question 8

economic and socail goals (7)

Answer 8

1. economic freedom
2. economic efficiency
3. economic equity
4. economic security
5. full employment
6. price stability
7. economic growth
   ?8. future goals

Question 9

inflmation

Answer 9

rise in general prices

Question 10

fixed income

Answer 10

income that does in increase even though prices go up

Question 11

trade offs among goals

Answer 11

.

Question 12

capitalism

Answer 12

private citizens entrepreneurs own the factors of production

Question 13

free enterprise

Answer 13

lots of competition with limited government

Question 14

what are 5 important chacracteristics of free enterprise system?

Answer 14

1. economic freedom
2. voluntary exchange
3. private property rights
4. profit motive
5. competition

Question 15

voluntary exchange

Answer 15

characteristic of capitalism in which is act of buyers and sellers freely and willing engage in market transactions

Question 16

private property rights

Answer 16

another major feature in capitalism which is the privileges that entitles people to own and control their possessions as they wish

Question 17

pofit

Answer 17

the extend to which persons or organizations are better off at the end of the period then were at the start

Question 18

profit motive

Answer 18

the driving force that encourages people and organizations to improve their material well-being

Question 19

competition

Answer 19

struggle among seller s to attract consumers while lowering costs

Question 20

entrprenuer organizes and manages

Answer 20

land, capital, and labor in order to seek reward of profit

Question 21

role of a consumer

Answer 21

consumer sovereignty- ruler of the market

Question 22

role of governement

Answer 22

protector
provider and consumer
regulator
promoter of national goods