Chapter 16: Overview – Flashcards
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An economy may be defined as what?
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Social organization where social goods are distributed
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What are three determinations that an economy must perform?
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not the storage of the goods and those who get to enjoy them
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Research has found that after society has reached an annual income threshold of about ________________capita, additional income does not seem to make a society happier. What amount?
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15 thousand dollars
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Desires for things that can be obtained by labor or through exchange are called what?
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Economic wants
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Economic goods are the objects of our economic wants and are the things that what?
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money can buy
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Wealth is what we call what?
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material economic goods
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All economic goods take the form of either wealth or what?
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services
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Adam Smith's concept of the invisible hand refers to what?
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the rise and fall of prices that produce individual hands
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Adam Smith argued that people's needs were met by the market because people were what?
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Selfish
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Allowing the market to operate with a minimum of government regulation is called what?
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Lazy affair
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Charles Fourier and Robert Owen were what?
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utopian sociaties
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Karl Marx and Friedrich Engels argued for a new form of economic organization called what?
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Communism
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Louis Blanc was one of the originators of what?
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Socializam
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Communism refers to a state in which what is true?
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The communist party
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Soviet-style socialism was abandoned because why?
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Significantly lagging behind capitalist economony
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A planned economy is characterized by what?
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The government
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Which institution controls a planned economic system?
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Markets
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Which of the following is an example of a country with a planned economy?
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Possibility of making process
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In a market economy, the chief incentive is what?
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.
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An economy in which the government plays no part at all is called what?
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Pier free
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Equilibrium price is the price which what?
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Supply and demand meet at the point of equilibrium
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Major technological breakthroughs in the development of computers increased supply and quality. In response, prices of computers did what?
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Fall
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All modern economies, whatever their history, have evolved into what?
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Primatic market economony
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The "rule of law" in the U.S. limits the government's ability to change what?
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Property rights
