Ch. 2 Economics

9 July 2024
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question
Which of the following was a free market philosopher?
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Adam Smith
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Which of the following is a condition that most people would NOT expect the safety net of the government to provide for? -low income -natural disasters -joblessness -injuries
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low income
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Which of the following is NOT characteristic of a centrally planned economy? -each collective or factory sets its own goals -the central government owns all land and captital -each person is assigned a job -the central government makes all economic decisions
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each collective or factory sets its own goals
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What is one of the most important advantages of a free market?
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it encourages growth
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What is the struggle among varioud producers for the consumer's business called?
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competition
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How could the Chinese economy be characterized?
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mixed, but on the side of centrally planned
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Why does even a free market economy need some government intervention?
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to provide for things that the marketplace does not address
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Which of the following is NOT a key economic question? -how should these goods and services be produced -how should it be ensured that goods and services are paid for -what goods and services should be produced -who consumes these goods and services
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How should it be ensured that goods and services are paid for?
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What is an important advantage of a free market?
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if offers a wide variety of goods and services
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What does the process of specialization do for an economy?
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it makes it more efficient
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What incentive motivates a manufacturer to sell a product?
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making profits on sales
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Which of the following is characteristic of a traditional economy?
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Children tend to have the same jobs as their parents did
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What is the product market?
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the market in which households purchase the goods and services that firms produce
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What incentive do manufacturers have to sell their products?
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making profits on sales
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In what kind of an economy does the government make all the decisions?
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centrally planned
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What is the purpose of competition?
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to act as a regulating force in the marketplace
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What is the function of an economic system?
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to produce and distribute goods and services
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How would the economy of Canada be likely to be characterized?
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mixed, but on the side of free market
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Who was the leader that introduced communism and central planning to the former Soviet Union?
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Vladimir Lenin
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Which of the following was a free market philosopher who was associated with limited government, laissez-faire, the invisible hand and is also known as the "Father of Economics"?
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Adam Smith
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______ is the doctine that states that government generally should not intervene in the marketplace
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Laissez-faire
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a political system characterized by a centrally planned economy with all economic and political power resting in the hands of the central government is called
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communism
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an expectation that ecourages people to behave in a certain ways is called
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an incentive
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the struggle among producers for the dollars of consumers is called
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competition
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an economic system in which the central government makes all decisions on the production and consumption of goods and services is called
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centrally planned economy
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government programs that protext people experiencing unfavorable economic conditions is called
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a safety net
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the passion that inspires a person to serve his or her country is called
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patriotism
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term economists use to describe the self- regulating nature of the marketplace is
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the invisible hand
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a range with no clear divisions is called
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a continuum
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the concentration of the productive efforts of individuals and firms on a limited number of activities is called
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specialization
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the financial gain made in a transaction is called
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profit
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a social and political philosophy based on the beleif that democratic means should be used to evenly distribute wealth throughout a society is called
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socialism
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____ means requiring strict obedience to an authority, such as a dictator
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authoritarian
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an arrangement that allows buyers and sellers to exchange things is called a
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market
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a person or gorup of people living in the same residence is called a
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household
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an economic system that relies on habit, custom, or ritual to decide questions of production and consumption of goods and serives is called a
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traditional economy
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an economic system characterized by private or corporate ownership of capital goods; investments that are determined by private decision rather than by state control; and determined in a free market is called
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free enterprise
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the method used by a society to produce and distribute goods and services is called
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an economic system
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an industry that requires a large capital investment and that produces items used in other industries is called
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heavy industry
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An economic system in which a central authority is in command of the economy is called a
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Command economy
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The level of economic prosperity is called
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The standard of living
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An economic system in which decisions on production and consumption of goods and services are based on voluntary exchange in markets is called a
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Market economy
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A ______ is a large farm that is leased from the state to groups of peasant farmers
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Collective
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Ones own personal gain is called
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Self-interest
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Property owned by individuals or companies, not by the government or the people as a whole is called
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Private property
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The income people receive for supplying factors of production such as land, labor or capital is called
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Factor payments
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A market-based economic system with limited government involvement is called a
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Mixed economy
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The market in which households purchase the goods and services that firms produce is called the
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Product market
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Market in which firms purchase the factors of production from households is called the
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Factor market
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An organization that uses resources to produce a product which then sells is called a
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Firm
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The power of consumers to decide what gets produced is called
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Consumer sovereignty
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Selling state-run firms to individuals is called
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Privatization