ECO2013 Ch. 2

Which is an example of barter?

The market system is often also known as:

The term dollar votes in a market system means:

In the circular flow model, households earn their incomes in the:

The market system is said to be characterized by "consumer sovereignty." This is because:

With an increase in profits in a particular industry, we would expect:

Which of the following statements about the right to private ownership is false?

Issues of the distribution of goods and services and of incomes in a market system are the primary topics of which fundamental question?

In a command system:

The economies of Ireland and France are:

By free enterprise, we mean that:

The money income of households consists of the sum of:

Refer to the above figure. If box A represents households, D the resource market, and C businesses, then flow (8) would represent ___ while flow (6) would represent ___.

Refer to the above figure. If box A represents households, B the product market, and C businesses, and if flow (3) represents revenues, then flow (1) would represent:

Competition is more likely to exist when:

The idea that the desires of resource suppliers and firms to further their own self-interest will automatically further the public interest is known as:

The simple circular flow model shows that workers and capital-owners offer their services to firms through the:

Firms will tend to leave an industry when:

How do workers typically express self-interest?

The market system is an economic system that:

In a market economy, entrepreneurs are most concerned with:

In a market system, self-interest is the motivating force that drives the decisions and actions of the following groups, except:

Which is one of the five fundamental questions that need to be dealt with in any economic system?

Which is not one of the five fundamental questions that an economy must deal with?

In product markets:

As new firms enter an expanding industry:

Consumer sovereignty and "dollar votes" guide the market system in dealing with which fundamental question?

"For whom is a given mix of goods and services to be produced? How, in other words, are the society's outputs to be distributed among its members?" In a market economy, this problem is resolved primarily in the:

All of the following statements describe a market economy except:

The circular flow model:

Which statement is correct?

One element of the command system is:

Consumers express self-interest when they:

In a market economy, the money incomes of individuals depend primarily upon:

The economies of North Korea and South Korea are:

The major virtues of the market system include all of the following, except:

The system where workers concentrate on specialized tasks to make a product is referred to as:

In the circular flow model, households:

As new firms enter an expanding industry:

Which of the following does not illustrate the idea of creative destruction?

Which fundamental economic question does a market system primarily address by focusing on technological advance and capital accumulation?

The market economy is regarded as "efficient" in that:

The market system communicates changes in market conditions and elicits appropriate responses from businesses and resource suppliers through changes in prices. This is known as the:

How does human specialization contribute to an economy's output?

A characteristic of the market system is:

A required element of specialization is:

A basic characteristic of a command system is that:

Consider a barter system where you have pens, but you want pencils. To satisfy your want there must be:

In the circular flow diagram, households:

Refer to the above figure. If box A represents households, B the product market, and C businesses, and if flow (3) represents revenues, then (4) would represent ___ while flow (5) would represent ____.