Chapter 2 Flashcards

0
Q

What is the struggle among various producers for the consumers business called?

A

Completion

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1
Q

What is the function of an economic system?

A

To produce and distribute goods and services

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2
Q

What does the process of specialization do for an economy?

A

It makes it more efficient

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3
Q

Collectives in the Soviet Union were inefficient producers of agriculture products. Why?

A

Farm workers had guaranteed incomes, so they had few incentives to produce more or better crops.

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4
Q

Which of the following was a free market philosopher?

A

Ad smith

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5
Q

How could the Chinese economy be characterized

A

Mixed, but in the side of centrally planned

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6
Q

What is one of the most important advantages of a free market?

A

It encourages growth

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7
Q

Who was the leader that introduce communism and central planning to the former Soviet Union?

A

Vladimir Lenin

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8
Q

What might be a hardship for citizenship of centrally planed economy making a transition between market-based system?

A

Workers would loose job security and guaranteed incomes.

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9
Q

In which of the following lists of mixed economies does the market system dominate?

A

United States, United Kingdom, Singapore, Hong Kong

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10
Q

Why do markets exist?

A

Markets allow people to buy what they need to consume and sell the specialized goods and services they produce

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11
Q

Why does even a free market economy need some government intervention?

A

To provide for things that the marketplace does not address

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12
Q

In what kind of an economy does the government make all the decisions?

A

Centrally planned

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13
Q

Which of the following is characteristic of a traditional economy?

A

Children tend to have the same jobs as their parents did

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14
Q

What is the product market?

A

He market in which households purchase the goods and services that firms produce

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15
Q

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?

A

Market economy

16
Q

Suppose there is a family in which all the boys are expected to become farmers when they are adults, just as their fathers and grandfathers did. In which kind of economy do they participate?

A

Traditional economy

17
Q

Which of the following does a government provide as part of a safety net for the people?

A

Unemployment compensation

18
Q

The economy of china is in transition. What does this mean?

A

The economy is moving from central planning toward a market-based system.

19
Q

Which of the following goals is difficult to achieve in a pure fee market system?

A

Economic equity

20
Q

What incentive motivates a manufacturer to sell a product?

A

Making profits on sales

21
Q

A person believes hat rail equality can only exist when political equality is couples with economic equality. This person believes that democratic means should be used I distribute wealth evenly throughout society. This person is a

A

Socialist

22
Q

What incentive do manufacturers have to sell their products?

A

Making profits on sales

23
Q

What is the purpose of completion?

A

To act as a regulating force in the marketplace

24
Q

What is an important advantage of a free market?

A

It offers a wide variety of goods and services.

25
Q

How would the economy of Canada be likely to be characterized?

A

Mixed, but in the side of free market