Chapter 2 VocB

Question 0

Economic system in which the central government makes all decisions on the production and consumption of good and services

Answer 0

Centrally planned economy

Question 1

Requiring strict obedience to an authority such as a dictator

Answer 1

Authoritarian

Question 2

Large farm leased from the state to groups of peasant farmers

Answer 2

Collective

Question 3

Economic system in which the central makes all decisions on the production and consumption of goods and services

Answer 3

Command economy

Question 4

A political system characterized by a central planned economy with all economic and political power resting in the hands of the central government

Answer 4

Communism

Question 5

The power of consumers to decide what gets produced

Answer 5

Consumer sovereignty

Question 6

A range with. I clear divisions

Answer 6

Continuum

Question 7

The method used by a society to produce and distribute goods and services

Answer 7

Economic system

Question 8

Market in which farms purchase the factors of production from households

Answer 8

Factor market

Question 9

The income people recurve for supplying factor of production

Answer 9

Factor payments

Question 10

An organization that uses resources to produce a product which it then sells

Answer 10

Firm

Question 11

An economic system characterized by private or. Or pirate ownership of capital goods; investments that are determined by private decision rather than by state control; and determine in a free market

Answer 11

Free enterprise

Question 12

Industry that requires a large capital investments and that produces items used in other industries

Answer 12

Heavy industries

Question 13

A person or a group of people living in the same residence

Answer 13

Household

Question 14

An expectation that encourages people to behave a certain way

Answer 14

Incentive

Question 15

Term economists use to describe the self regulating nature of the marketplace

Answer 15

Invisible hand

Question 16

The doctrine that states that government generally should not intervene in the market place

Answer 16

Laissez faire

Question 17

An arrangement that allows buyers and sellers to exchange things

Answer 17

Market

Question 18

Economic system in which decisions on production. And consumption of goods and services are based on voluntary exchange in markets

Answer 18

Market economy

Question 19

Economic system that combines the free market with limited government involvement

Answer 19

Mixed economy

Question 20

The love of one’s country; the passion that inspires a person to serve their country

Answer 20

Patriotism

Question 21

Property owned by individuals or companies, not be government or the people as a whole

Answer 21

Private property

Question 22

To sell to individuals state run firms, which are then allowed to compete with one another in the market place

Answer 22

Privatize

Question 23

The market in which households purchase that goods and services that firms produce

Answer 23

Product market

Question 24

The financial gain made in a transaction

Answer 24

Profit

Question 25

Government programs that protect people experiencing unfavorable economic conditions

Answer 25

Safety net

Question 26

One’s own personal gain

Answer 26

Self-interest

Question 27

A social and political philosophy based on the belief that democratic means should be used to evenly distribute wealth throughout a society

Answer 27

Socialism

Question 28

The concentration of the productive efforts of individuals and firms on a limited number of activities

Answer 28

Specialization

Question 29

Level of economic prosperity

Answer 29

Standard of livin

Question 30

Economic system that relies in habit, custom, or ritual to decide questions of production and consumption of goods and services

Answer 30

Traditional economy

Question 31

Period of change in which an economy moves away from a centrally planned economy toward a market based system

Answer 31

Transition