Chapter 2 Test Flashcards
What is the struggle among the various producers for the consumers business called
Competition
What incentive motivates a manufacturer to sell a product
Profit
How is the Chinese economy characterized on the continuum
Mixed centrally planned than free market
How would the Canadian economy be characterized
Profits
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
In the product market
List the important advantages of a free market
Efficiency freedom economic
Who was a free market philosopher
Adam smith
what kind if an economy does the government make all the economic decisions
Centrally planed economy
How does a centrally planned economy do to inspire it workers to increase their productivity
Prints and distributes posters
What is the purpose of competition
Regulation force in the market place
What does the process of specialization do for an economy
It leads to efficient use of resources
What are the advantages of a free market
Efficiency freedom economic
What are the weaknesses of a a centrally planned economy
Consumer needs not met workers lack incentive performances fall short
What are three conditions people would expect the safety net of the government to provide for?
Layoffs injuries natural disasters
Which kind of economy gives the entrepreneur the most opportunity to succeed
Market economy
What does it mean when a country is in a transition
economy moves away form a CPe toward a market based system
Why do markets exist
No one is self sufficient exchange for things we want specialization leads to efficient use of resources
List the characteristics of a cpe
Government owns all land and capital makes all decision and assigns jobs
Who was the leader that introduced communism and CPe to the former Soviet Union
Vladimir Lenin
What woulda beloved of the doctrine of laid suez fairer think of government funding of edu
Disapprove private schools only
Not everyone edu
Why we’re collectives in the Soviet Union inefficient produces of Agri products
Guaranteed income equals few incentives
Why does even a free market economy need some gov intervention
Provide for things the market can’t supply
Which if the goals is difficult to achieve in a pure free market system
Equity and security
What is the function of an economic system
To produce and distribute goods and services
What does a socialist believe
Equality can only exist when political ecomonomic equality
What is the motivation force behind the free market
Self interest
What are the three economic question
What goods and services should be produces?
How should these goods and services be produced?
Who consumes these goods and services
What are the characteristics of a traditional economy
Customs and rituals revolves around family
Why might the transition from a CPe to a market bases system be a hardship for the citizens
Loss of security and income
What are the safety nets provides by the governments
Unemployment Medicade
