Economics Chapter 2 Test Review – Flashcards
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system
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The way a society uses resources to satisfy its peoples unlimited wants is called an economic
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authoritarian system
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Absolute Ioyalty to the people in power is called
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Das Kapital
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What was Marx's 3 volume study called?
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socialism
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When the government owns some but not all the factors of production
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everything an individual owns
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In economic terms, property means
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Agree to do business for benefit of both
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What is the theory behind voluntary exchange?
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consumers
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In a market economy the real power is held by
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How all interactions occur in a market economy
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What does a circular flow model show?
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Freedom
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What are the advantages of a pure market economy?
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Lend, labor, capitol and entrepreneurs are purchased
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What takes place in a factor market?
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businesses
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Who are the suppliers in a product market?
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United States, France
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List a couple of nations that play a very limited role in their nation's economy.
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Telephone and computer linkages
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What has made global transactions very quick and inexpensive?
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Public; private ownership
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When a nation privatizes, its economy changes from a _________ to a ___________.
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traditional
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Economy where women tend crops and men hunt.
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Command Economy
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Economy where government officials decide the distribution of resources.
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Market Economy
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Economy where producers and buyers drive it.
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Worker; owner
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According to Marx, all history is a struggle between _________ and _________.
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Industrial Revolution
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According to Marx, wage slavery was created by what?
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communism
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A form of authoritarian socialism is
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relieved restrictions on private ownership
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Since 2003 planners in North Korea have
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A song
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An example of intellectual property
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Command Economy
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Bureaucrats deciding what products should be sold in stores is a feature of a
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revolt
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Karl Marx predicted that in time workers would
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Government stays out of the way
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In economic terms laissez faire means
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pure
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In today's world there are no ___________ markets.
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Market Economy
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Freedom of economic choice is an example of a
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It has elements of all three economies combined
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What is a mixed economy?
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Influence of a traditional economy
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In the US, harvest times customs represent
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Much greater government involvement
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A mixed economy in Sweden represents
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Nationalism
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Moving steel mills from private ownership to public is an example of
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Traditional Economy
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Resistance to new farming methods is an example of
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They have little knowledge of economic conditions
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Economic decisions of central planners are often wrong because
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Building military
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The famine in North Korea was a result of
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Command Economy
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In the USSR the practice of workers stealing Iight bulbs was a result of
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So markets are efficient
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Why is it that we have well defined property rights?
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Consumer Sovereignty
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What is the purpose of businesses taking surveys?
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Having two types of peanut butter
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How can a grocery store show the influence of competition?
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Product Market
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An individual buying a DVD is participating in the
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Factor Market
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An individual hiring a waitress is participating in the
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Command and Market Economies
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A society that has public schools and ownership of private property has elements of both
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Traditional and Market Economies
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A society that practices subsistence farming while others own business has elements of
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Privatization
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Moving railroads from government ownership to stockholders is an example of
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Shortage of coffee in Kenya causes prices to rise in the US
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An example of the global economy is shown when you have a shortage of or prices rise or Iower
