Advertisement Upgrade to remove ads

The two general types of economic systems that exist today are?

market systems and command systems.

Examples of command economies are?

Cuba and North Korea.

Of the following countries, the one that best exhibits the characteristics of a market economy is?

Canada.

Economic scarcity?

applies to all economies

Which of the following is a fundamental characteristic of the market system?

property rights.

Broadly defined, competition involves?

independently acting buyers and sellers and freedom to enter or leave markets.

Which of the following is not an economic cost?

economic profits.

In a market economy the distribution of output will be determined primarily by?

the quantities and prices of the resources that households supply.

The market system's answer to the fundamental question "What will be produced?" is essentially?

"Goods and services that are profitable."

The market system's answer to the fundamental question "Who will get the goods and services?" is essentially?

"Those willing and able to pay for them."

The advent of DVDs threatens to eventually demolish the market for videocassettes. This is an example of?

creative destruction.

"Under central planning, some group has to decide how to get the necessary inputs produced in the right amounts and delivered to the right places at the right time. This is a nearly impossible task without markets and profits." This quotation best identifies the?

coordination problem under central planning.

Innovation lagged in the centrally planned economies because?

enterprises resisted innovation in fear that their production targets would be raised.

The failure of Soviet central planning was reflected in?

a declining growth rate, poor quality goods, & the failure to provide promised consumer goods.

The simple circular flow model shows that?

households are on the selling side of the resource market and on the buying side of the product market.

The two basic markets shown by the simple circular flow model are?

product and resource.

Refer to the above diagram. Flow (1) represents? (see notes for chart)

wage, rent, interest, and profit income.

Refer to the above diagram. Flow (3) represents? (see notes for chart)

goods and services.

Refer to the above diagram. Flow (4) represents? (see notes for chart)

consumer expenditures.

In terms of the circular flow diagram, businesses obtain revenue through the _____ market and make expenditures in the _____ market.

product; resource

Households and businesses are?

sellers in the resource and product markets respectively.

Refer to the above diagram. Arrows (1) and (2) represent?

resources and goods respectively.

Refer to the above diagram. Arrows (3) and (4) represent?

incomes and consumer expenditures respectively.

Refer to the above diagram. Arrows (1) and (3) are associated with?

the resource market.

According to Dallas Federal Reserve economist W. Michael Cox, taken to its extreme, the logic of "buying American" implies that?

people should only consume what they can produce themselves.

Please allow access to your computer’s microphone to use Voice Recording.

Having trouble? Click here for help.

We can’t access your microphone!

Click the icon above to update your browser permissions above and try again

Example:

Reload the page to try again!

Reload

Press Cmd-0 to reset your zoom

Press Ctrl-0 to reset your zoom

It looks like your browser might be zoomed in or out. Your browser needs to be zoomed to a normal size to record audio.

Please upgrade Flash or install Chrome
to use Voice Recording.

For more help, see our troubleshooting page.

Your microphone is muted

For help fixing this issue, see this FAQ.

Star this term

You can study starred terms together

NEW! Voice Recording

Create Set