Unit Test 3

Question 1

Economic Systems

Answer 1

The way a society uses resources to satisfy its people’s wants

Question 2

Market economy

Answer 2

Producers and consumers drive economy not govt

Question 3

Socialism

Answer 3

Govt owns major industries but also allows private ownership

Question 4

Profit motive

Answer 4

Driving force where individuals promote self interest

Question 5

Global economy

Answer 5

All the economies interactions that cross international boundaries

Question 6

Traditional economy

Answer 6

Economic activists stem from habit or customs roles are defined by ancestors

Question 7

Capitalism

Answer 7

An economics system based on private ownership of the factors of production.

Question 8

Consumer sovereignty

Answer 8

Consumers control what gets produced because they’re free to purchase what they want

Question 9

Nationalization

Answer 9

To change from private ownership to government or public ownership

Question 10

Mixed economy

Answer 10

An economy that has elements of traditional command and market economy

Question 11

Command economy

Answer 11

System where govt makes all economic decisions

Question 12

Communism

Answer 12

Total govt control over a society limited freedom

Question 13

Voluntary exchange

Answer 13

Buyers and sellers willing engage in transactions

Question 14

Privatization

Answer 14

To change from govt or public ownership to private

Question 15

Specialization

Answer 15

Country produces enough goods to be completely self-sufficient.

Question 16

Examples of tradition command and market economies

Answer 16

T: new guniea
C: North Korea
M: USA

Question 17

S and W for traditional

Answer 17

S: Will always have job given from ancestor

W: no new technology

Question 18

S and W for command

Answer 18

S:

W: limited freedom

Question 19

S and W for market

Answer 19

S: given most freedom

W:

Question 20

Economic freedom

Answer 20

Producers and consumers have freedom to choose what to buy who to hire and what to produce

Question 21

voluntary exchange in markets

Answer 21

Buyers and sellers willingly engage in transactions

Question 22

Private property

Answer 22

Right to control possessions as you wish

Question 23

Competition

Answer 23

Sellers acting independently to attract consumers by offering best deal

Question 24

Limited government

Answer 24

Competitor printed efficient use of resources however all real world msrket economies have some degree of govt involvement

Question 25

Adam smith

Answer 25

Book: wealth of nations 
Self interest: invisible hand provides order and harmony 
Limited role in govt 
Free trade with any nation 
Specialization 
U.S. British trade

Question 26

Karl Marx

Answer 26

Revolt the upper class have a dictator become a classless society and no govt would be needed
communist manifesto
Das Kapital
Russian revolution Lenin and Stalin