5set Flashcards
(26 cards)
What is the struggle among various producers for the consumers business called
Competition
What is the function of an economic system
To produce and distribute goods and services
What does the process of specialization do for an economy
It makes it more efficient
Collectives in the Soviet Union were inefficient producers of agrilcultural products. Why?
Farm workers had guaranteed incomes, so they had few incentives to produce more or better crops
Which of the following was a free market philosopher
Karl Marx
How could the Chinese economy be characterized
Mixed, but on the side of centrally planned
What is one of the most important advantages of a free market
It encourages growth
Who was the leader that introduced communism and central planning to the former Soviet Union
Vladimir Lenin
What might be a hardship for citizens of a centrally planned economy making a transition to a market-based system
Workers would lose job security and guaranteed incomes
In which of the following lists of mixed economies does the market system dominate
United States
United Kingdom
Singapore
Hone Kong
Why do markets exist
Market allow people to buy what they need to consume and sell the specialized goods and services they produce
Why does even a free market economy need some government intervention
To provide for things that the marketplace does not address
In what kind if an economy does the government make all the decisions
Centrally planned
Which of the following is charts rustic of a traditional economy
Children tend to have the same jobs as their parents did
What is the product market
The market in which households purchase the goods and services that firms produce
You are an entrepreneur with an innovative idea for a new business. In which kind of economy would you have the most opportunity to try to achieve success
Market economy
Suppose there is a family in which all the boys are expected to become farmers when they are adults, just as their farther and grandfathers did. I’m which kind of economy do they participate.
Traditional economy
Which of the following does a government provide as part of a safety
Net for the people
Unemployment compensation
The economy of China is in transition. What does this mean?
The economy is moving from central planning toward a market based system
Which of the following goals is difficult to achieve in a pure free market system
Economic equity
What incentive motivates a manufacturer to sell a product
Making profits on sales
A person believes that real equality can only exist when political equality is coupled with economic equality. This person believes that democratic means should be used to distribute wealth evenly throughout society. This person is a..
Socialist
What incentive do manufacturers have to sell their products?
Making profits on sales
What is the purpose of competition
To act as a regulating force in the marketplace
