Chapter 2 Test

Question 0

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

Answer 0

Competition

Question 1

What incentive motivates a manufacturer to sell a product

Answer 1

Profit

Question 2

How is the Chinese economy characterized on the continuum

Answer 2

Mixed centrally planned than free market

Question 3

How would the Canadian economy be characterized

Answer 3

Profits

Question 4

Households pay firms for goods and services and firms supply households with goods and services. Where does the purchase and supply of goods and services take place

Answer 4

In the product market

Question 5

List the important advantages of a free market

Answer 5

Efficiency freedom economic

Question 6

Who was a free market philosopher

Answer 6

Adam smith

Question 7

what kind if an economy does the government make all the economic decisions

Answer 7

Centrally planed economy

Question 8

How does a centrally planned economy do to inspire it workers to increase their productivity

Answer 8

Prints and distributes posters

Question 9

What is the purpose of competition

Answer 9

Regulation force in the market place

Question 10

What does the process of specialization do for an economy

Answer 10

It leads to efficient use of resources

Question 11

What are the advantages of a free market

Answer 11

Efficiency freedom economic

Question 12

What are the weaknesses of a a centrally planned economy

Answer 12

Consumer needs not met workers lack incentive performances fall short

Question 13

What are three conditions people would expect the safety net of the government to provide for?

Answer 13

Layoffs injuries natural disasters

Question 14

Which kind of economy gives the entrepreneur the most opportunity to succeed

Answer 14

Market economy

Question 15

What does it mean when a country is in a transition

Answer 15

economy moves away form a CPe toward a market based system

Question 16

Why do markets exist

Answer 16

No one is self sufficient exchange for things we want specialization leads to efficient use of resources

Question 17

List the characteristics of a cpe

Answer 17

Government owns all land and capital makes all decision and assigns jobs

Question 18

Who was the leader that introduced communism and CPe to the former Soviet Union

Answer 18

Vladimir Lenin

Question 19

What woulda beloved of the doctrine of laid suez fairer think of government funding of edu

Answer 19

Disapprove private schools only

Not everyone edu

Question 20

Why we’re collectives in the Soviet Union inefficient produces of Agri products

Answer 20

Guaranteed income equals few incentives

Question 21

Why does even a free market economy need some gov intervention

Answer 21

Provide for things the market can’t supply

Question 22

Which if the goals is difficult to achieve in a pure free market system

Answer 22

Equity and security

Question 23

What is the function of an economic system

Answer 23

To produce and distribute goods and services

Question 24

What does a socialist believe

Answer 24

Equality can only exist when political ecomonomic equality

Question 25

What is the motivation force behind the free market

Answer 25

Self interest

Question 26

What are the three economic question

Answer 26

What goods and services should be produces?
How should these goods and services be produced?
Who consumes these goods and services

Question 27

What are the characteristics of a traditional economy

Answer 27

Customs and rituals revolves around family

Question 28

Why might the transition from a CPe to a market bases system be a hardship for the citizens

Answer 28

Loss of security and income

Question 29

What are the safety nets provides by the governments

Answer 29

Unemployment Medicade