Download Pierson Econ CH 2 - Hillsdale Community Schools

Pierson Econ CH 2
Question
Answer
1. What goods and services should be produced, how should these
goods and services be produced, who consumes these goods and
services are all _____ economic questions. 23-24
key
2. The function of an economic system is to _____ and _____ goods
and services. 23
produce distribute
3. The method used by society to produce and distribute goods and
services. 23
economic system
4. The income people receive for supplying such things as land, labor,
or capital. 24
factor payments
5. "Children tend to have the same jobs as their parents did" is a
characteristic of a ____ economy. 26-27
traditional
6. Which of the following is a condition that most people would NOT
expect the safety net of the government to provide for? injuries,
joblessness, natural disasters, low income 26
low income
7. Which of the following does a government provide as part of a safety
unemployment
net for the people? general elections, unemployment compensation,
compensation
military defense, regulation of commerce. 26
8. A level of economic prosperity 26
standard of living
9. Government programs that protect people experiencing unfavorable
safety net
economic conditions 26
10. An economic system that relies on habit, custom, or ritual to decide
traditional economy
questions of consumption and production of goods and services 26
11. In which kind of an economy does the government make all the
decisions? 27
centrally planned
12. Suppose there is a family in which all the boys are expected to
become farmers when they are adults, just as their fathers and
grandfathers did. In which kind of economy do they participate? 27
traditional
13. You are an entrepreneur with an innovative idea for a new
business. In which kind of economy would you have the most
opportunity. 27
market
14. Markets exist to allow people to buy what they need to _____ and
_____ the specialized goods and services they produce. 28
consume sell
15. What does the process of specialization do for an economy? 29
makes it more efficient
16. What incentive motivates a manufacturer to sell a product? 30-31
profit
17. The market in which households purchase the goods and services
that firms produce is a _____ market. 30
product
18. Households pay firms for goods and services. Firms supply
households with goods and services. The purchase and supply of
goods and services takes place in the _____market.30
product
19. An expectation that encourages people to behave in a certain
way.31
incentive
20. One's own personal gain 31
self-interest
21. a situation in which households purchase the goods and services
that firms produce 30
product market
22. What incentive do manufacturers have to sell their products? 31
profit
23. The purpose of competition is to act as a _____ force in the _____.
regulating marketplace
31
24. What is the motivating force behind the free market? 31
self-interest
25. What is the struggle among various producers for the consumer's
business called? 31
competition
26. One of the most important advantages of a _____ market is that it
encourages growth. 32
free
27. An important advantage of a free market is that it offers a wide
_____ of goods and services. 32
variety
28. Which of the following goals is difficult to achieve in a pure free
market system? economic efficiency, economic equity, economic
freedom, economic growth. 32
economic equity
29. Of the following, who was a free market philosopher? Karl Marx,
Adam Smith, Vladimir Lenin, Friedrich Engels? 33
Adam Smith
30. Which of the following is NOT characteristic of a centrally planned
economy? The central government owns all land and capital, The
central government makes all economic decisions, Each collective or
factory sets its own goals 34-35
set goals
31. A government prints and distributes posters to inspire workers to
increase their productivity. In which kind of economy does this most
likely take place? weak economy, traditional economy, market
economy, centrally planned economy.34
centrally
32. a philosophy based on the belief that democratic means should be
socialism
used to distribute wealth evenly throughout a society 35
33. requiring strict obedience to someone such as a dictator 35
authoritarian
34. A person believes that real equality can only exist when political
equality is coupled with economic equality. This person believes that
democratic means should be used to distribute wealth evenly
throughout society. This person is a _____.
socialist
35. Who was the leader that introduced communism and central
planning to the former Soviet Union? 36
Lenin
36. Collectives in the Soviet Union were inefficient producers of
agricultural products because farm workers had little _____ to produce incentive
more or better crops. 36
37. a large Soviet farm leased from the state to groups of peasant
farmers 36
collective
38. Which of the following is NOT a weakness of centrally planned
job security
economies? Workers lack incentives, most workers lack job security.38
39. A free market economy needs some government intervention to
provide for things that the _____ does not address. 40-41
marketplace
40. A person who believed in the doctrine of laissez faire would
disapprove of _____ funding of education. 41
government
41. the doctrine that government generally should not intervene in the
marketplace 41
laissez faire
42. The Chinese economy could be characterized as mixed, but on the
centrally
side of _____ planned. 43
43. The economy of Canada could be characterized as mixed, but on
the side of _____ market. 43
free
44. The economy of China is in transition. It is moving from central
planning toward a _____ based system. 43
market
45. Singapore, United States, United Kingdom, Hong Kong all have
mixed economies where the _____ system is dominates. 43
market
46. state-run firm to individuals 43
privatize
47. an economic system that permits the conduct of business with
minimal government intervention 43
free enterprise
48. a range with no clear divisions 43
continuum
49. a period of change in an economy 43
Created by: pierson on 2013-04-17
transition
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