Chapter 3 Flashcards
In a pure S economy what to produce is determined by who?
The consumers voting with their dollars and the price mechanism
Under capitalism the role of the government is best described as what?
Very limited
Which economic system is usually associated with government ownership of the means of production and central planning?
Communism
Who said it is not the employer who pays wages he only handles money it is the product that pays the wages?
Henry Ford
Economist John Kenneth Galbraith has argued that most prices in our mixed economy are set by what?
The nations largest corporations
Karl Marx and Frederick Ingalls said what?
The theory of the communist may be summed up in one single sentence: abolish private property.
In a centrally planned economic system who decides what and how much will be produced?
The government
True or false. Since 1978 Chinese leaders have real laxed rigid party control of the economy and permitted more individual initiative
True
Who was responsible for both the Great Leap Forward and the cultural Revolution?
Moe Tse-ting
When are resources are not allocated efficiently, we have what?
A market failure
An example of a public good would be?
A flood control protection from the Tennessee Valley Authority
In the former Soviet Union most goods and services were produced by whom and in the United States most goods and services are produced by whom?
The government and private enterprise
The most socialist of all the countries is whom
Norway
In order for the price mechanism to work, we need what?
Many competing firms in each industry.
Hitler’s Germany was an example of what kind of economic system?
Fascism
