Upgrade to remove ads
Coach Wayne Study Guide 2
Terms in this set (22)
What might be a hardship for citizens of a centrally planned economy making a transition to a free market?
Workers would lose job security and guaranteed incomes
In which of the following lists of mixed economies does the free market system dominate?
United States, United Kingdom, Singapore, Hong Kong
What does the expression "the customer is king" mean in a free market economy?
Customers have the power to decide what gets
What is the product market?
The market in which households purchase goods & services that firms produce
Which of the following philosophers argued that a free market would regulate itself with little government involvement?
What does the process of specialization do for an economy?
It makes it more efficient
The United States government intervenes in the economy in order to
keep order, provide vital services, and promote the general welfare
The main difference between the economies of China and North Korea it that
China is privatizing state run businesses
Government intervention in a modern economy is useful because
Governments are more able to meet some needs and wants of modern society in a way that ensures that all member of society can participate
The united states is a mixed economy..
Based on the principles of the free market, but allowing some government interventions
The united states is a mixed economy.
How is the economic system in China today different from the one in Soviet Russia?
The Chinese government allows more economic freedom.
How did heavy industry and the Soviet Union avoid the competition that drives a free market economy
The government discouraged competition by determining prices, wages, and products
A socialist society have a more flexible command economy than a communist society because
Some free-market practices can combine with central economic planning
Why are free market economies able to attain economic growth
Competition encourages innovation, which causes growth.
What "invisible hand "regulates the free market economy
Competition and self-interest
How will consumers react to the incentive of a higher price on a good or service
The negative incentive will cause consumers to purchase less of the good or sercies if its of lower quality
Who owns factors of production
Why do people need to buy and sell products and services
No one is self sufficient
The ways in which factors of production are combined determines the answer to which economic question?
How will goods be produced?
Traditional economies are usually
Small, close communities that avoid change and new technology
To improve its standard of living, a nations economy must
Grow through innovation
Each society answers the 3 basic economic questions based on?
its unique combination of values and goals
You might also like...
Economy chapter 2
Economy chapter 2
Other sets by this creator