Choice Of Econ System

Question 1

Traditional economy

Answer 1

Procedures and practices are handed down from generation to generation

Question 2

Traditional economy bullet points

Answer 2

• Produces basic items
• Produce as much as they can

Question 3

White collar worker

Answer 3

Works in the office

Question 4

Blue collar worker

Answer 4

Perform manual labor

Question 5

Command economy

Answer 5

Decisions are handed down from the top

Question 6

Surge of change in 1990

Answer 6

1. Perestroika (restructuring)
2. Glasnost (openness)

Question 7

Perestroika

Answer 7

Establishment of a free market system

Question 8

Glasnost

Answer 8

Strengthening of democratic institutions

Question 9

De facto command economy

Answer 9

Strong presence of the government

Question 10

Strength of government

Answer 10

• capable of reviving a sick economy and calming an agitated one

Question 11

Shadow/underground economy

Answer 11

Supply and demand freely operates (unlicensed)

Question 12

Marxian philosophy

Answer 12

• Common goal: welfare of the state

• End capitalism, start communism

Question 13

Market economy

Answer 13

Simple act of buying and selling

Question 14

Market economy bullet points

Answer 14

Goods are produced because people desire them and are willing to pay

Question 15

Peso votes

Answer 15

Secret of market economy

Question 16

Invisible hand

Answer 16

Unseen forces that guides the free market economy to give the best market outcome