chapter 2 lists

Question 1

name the four types of competition?

Answer 1

perfect competition
monopolistic competition
oligopoly
monopoly

Question 2

what are 3 benefit of free markets/ capitalism?

Answer 2

creation of wealth
allows open competition
brought prosperity

Question 3

what are 4 limitations to the free market/ capitalism?

Answer 3

inequality
poverty
unemployment
greed has dictated how some do business

Question 4

what are 4 benefits of socialism?

Answer 4

focus on social equality
workers get longer vacation
workers work less hours
workers enjoy better benifits

Question 5

what are 4 limitations of socialism?

Answer 5

does not motivate business people to work hard

does not motivate business people to invest and create more wealth
less innovation
lack of individual incentive

Question 6

what are 5 limitations of communism?

Answer 6

government has no data on supply and demand which lead to shortages or surplus in production

no motivation for business people to work hard

lack of incentives
will fall on economic hard ship

lack of goods and services that are readily available in other countries

Question 7

name the seven key economic indicators of the Canadian economy?

Answer 7

GDP (gross domestic economy)
unemployment rate
housing market
commodity prices
stock market and if people are buying stocks
price indexes
decrease in productivity

Question 8

what are the four types of unemployment?

Answer 8

frictional unemployment
structural unemployment
cyclical unemployment
seasonal unemployment

Question 9

what are the 4 types of economic markets?

Answer 9

capitalism
socialism
communism
mixed economy

Question 10

what is capitalism?

Answer 10

when all or most of the factors of production and distribution is owned privately

Question 11

what is communism?

Answer 11

an economic system where the government decides what will be produced and who will consume the results of production

Question 12

what is socialism?

Answer 12

some free market and some government allocation

Question 13

what is a mixed economy?

Answer 13

mix of free market allocation and government allocation

Question 14

how does a free market work?

Answer 14

many buyers and sellers trading freely determine the prices at which they will exchange goods and services

Question 15

how are prices determined in a free market?

Answer 15

the constant interplay between supply and demand determines the equilibrium price at which a transaction will occur

Question 16

name the four types of competition/ market structure?

Answer 16

perfect competition
monopolistic competition
oligopoly
monopoly

Question 17

what is perfect competition?

Answer 17

when there are many sellers in a market and no seller is large enough dictate the price of the product and the product is identical

Question 18

what is an oligopoly?

Answer 18

when a few sellers dominate a market and there is significant investment needed to enter the market

Question 19

what is a monopoly?

Answer 19

when there is only one seller for a good or service and that one seller controls the total supply and price of the product

Question 20

what is a monopolistic competition?

Answer 20

when a large number of sellers produce goods that are similar but buyers perceive them as different