Chapter 2 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
Makes it more efficient
Collectives and the Soviet Union were inefficient producers of a agricultural product. why?
Farmworkers had guaranteed income so they had few incentives to produce more and better crops
Which of the following was a free-market philosopher
Adam smith
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 Freemarket
Encourages growth
Who is the later the introduced communism and centrally planning to 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 loose job security and guaranteed income
And which of the following list of mixed economies does the market system dominate
US ,United Kingdom ,Singapore and Hong Kong
Why do markets exist
Markets allow people to buy what they need to consume and sell the specialize goods and services they produce
Why does it even a free-market economy needs some government intervention
To provide for things that the marketplace does not address
In what kind of an economy does the government make all decisions
Centrally planned
Which of the following is a characteristic 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 purchasing goods and services that firms produce
You’re an entrepreneur within innovative idea for new business in which kind of economy would you have the most opportunity to try to achieve success
Market economy
Suppose there’s a family in which all the boys are expected to become farmers when they are adults just as their fathers and grandfathers did and which kind of economy do they participate
Traditional economy
Which of the following does a government provide as a part of safety net for the people
Unemployment compensation
The economy of China is in transition. what does this mean?
The economy is moving from central plan 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 exists when political equality is coupled with economic equality this person beleives that democratic means should be used to distribute wealth evenly throughout society this person is
Socialist
What incentive do manufacturers have to sell their products
Making profit on sales
What is the purpose of competition
To act as a regulating force in the market place
