Download Command & Traditional Economies - Hamburg Central School District

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In the former Soviet Union, the
practice of people taking
factory light bulbs to use in
their homes was the result of:
a) Shortage
b) Scarcity
What type of economic system
does this happen in?
The situation where
women tend crops
and raise children
while men hunt is
often found in what
type of economic
system?
Since 2003, central planners of
North Korea have
a. increased restrictions on private
ownership of resources
b. established plans to completely
open the economy to market forces
c. relaxed restrictions on private
ownership somewhat
d. clamped down on all market
activity in the economy
Resistance to the
introduction of new
farming methods is
an attitude often
found in what type
of economy?
The economic
decisions of central
planners often are
wrong because
they have little
understanding of…
Consumers "vote" by choosing
a. a product over competing
products
b. a resource over other
resources
c. to become entrepreneurs
d. to keep away from fad
products
The most common
economic system is a:
a. traditional economy
b. command economy
c. market economy
d. mixed economy
A society that has
public schools and
ownership of private
property has elements
of which two
economic systems?
Elements of
traditional,
command, and
market economies
are combined in
what type of
economic system?
Freedom of
economic choice is
one of the chief
advantages of what
economic system?
What is free
contract?
Which would be
considered an
automatic stabilizer?
a.
b.
c.
d.
highway spending
income tax
military spending
sales tax
Who funds public
goods?
A public transfer payment
happens when the government
transfers income from
a. donors to recipients who do not
provide anything in return
b. donors to recipients who
provide something in return
c. taxpayers to recipients who do
not provide anything in return
d. taxpayers to recipient who
provide something in return
Define:
Privatization
&
Nationalization
A circular flow
model shows
what?
In a factor market
a. businesses are customers
and individuals are producers
b. individuals are customers
and businesses are producers
c. businesses sell productive
resources
d. individuals buy goods and
services
What is the
product market?
Producers decide
allocation of goods
based on…
Someone hiring a
cashier is
participating in
what market?
How did the Great Depression
affect the thinking of John
Maynard Keynes and other
economists?
a. It caused them to adopt more laissezfaire policies.
b. It caused them to advocate reductions
in government spending.
c. It caused them to advocate higher
income tax rates.
d. It caused them to favor government
intervention in the economy.
Whose economic theory
did Keynesian economics
work to counteract?
a. Alexander Hamilton
b. Karl Marx
c. Joan Robinson
d. Adam Smith
What did Keynes consider the
most influential part of his GDP
equation; why?
a. consumer goods because low consumer
confidence worsened the Great Depression
b. government goods because government
spending is large part of the economy
c. investment because it fluctuated and was
linked to the spending multiplier effect
d. net exports because they were related to
a favorable balance of trade
What does the
Laffer Curve do?
According to
Milton Friedman,
the Market should
be allowed to
operate freely…
ADVANTAGES:
•The three economic
questions are clearly
answered by custom
•There is little
disagreement over
economic goals
DISADVANTAGES:
•They resist change
•They are less productive
because of this
•Everything is based on
custom so people aren’t
always using their strengths
•They have a lower
standard of living
What type of market is represented by
the chart above?
Explain both DemandSide Economics and
Supply-Side Economics
Demand-side
Supply-side
Focus on increasing
aggregate demand
Decrease corporate
taxes; cut the costs of
production
Tough to fix
stagflation because
fixing inflation and
fixing unemployment
require opposite
policies
Tough to evaluate the
full impact of this
because some supplyside policies also
stimulate demand
Increase spending
Trickle down theory
Decrease taxes
Decrease taxes
Democrats (however,
they often look to
increase taxes)
Cut spending