logo image

Economics – Chapter 2 & 3

Why does even a free market economy need some government intervention?
a. to provide for things that the marketplace does not address
b. to ensure that the government has the freedom to tax as necessary
c. to make sure that the government can fulfill its needs for military personnel
d. so that the government has some control over factor resources
What incentive motivates a manufacturer to sell a product?
a. making profits on sales
b. putting others out of business
c. pleasing the consumer
d. popularity of the product
Which of the following is NOT a key economic question?
a. What goods and services should be produced?
b. How should these goods and services be produced?
c. Who consumes these goods and services?
d. How should it be ensured that goods and services are paid for?
What does the process of specialization do for an economy?
a. It eliminates unemployment.
b. It makes it more efficient.
c. It fosters competition.
d. It makes it easier to control.
How could the Chinese economy be characterized?
a. free market
b. centrally planned
c. mixed, but on the side of centrally planned
d. mixed, but on the side of free market
9. Which of the following is NOT characteristic of a centrally planned economy?
a. The central government owns all land and capital.
b. The central government makes all economic decisions.
c. Each collective or factory sets its own goals.
d. Each person is assigned a job.
What is an important advantage of a free market?
a. It does not change unless the government directs it.
b. It offers a wide variety of goods and services.
c. It is easy to regulate.
d. It protects the less fortunate
Which of the following was a free market philosopher?
a. Karl Marx
b. Adam Smith
c. Vladimir Lenin
d. Friedrich Engels
What is the product market?
a. the market in which payments are received for selling products to consumers
b. the market in which income is received for supplying land, labor, or capitalc. the market in which firms purchase the factors of production from households
d. the market in which households purchase the goods and services that firms produce
The struggle among various producers for the consumer’s business is called __________.
a. socialism
b. competition
c. incentive
d. self-regulation
In what kind of an economy does the government make all the decisions?
a. socialist
b. laissez faire
c. centrally planned
d. free enterprise
What is the purpose of competition?
a. to act as a regulating force in the marketplace
b. to cause producers to attempt to put each other out of business
c. to cause buyers to have to be careful about spending their money
d. to act as a motivating force behind the free market
What is one of the most important advantages of a free market?
a. It can change rapidly.
b. It protects the less fortunate.
c. It is easy to regulate.
d. It encourages growth
Who was the leader that introduced communism and central planning to the former Soviet Union?
a. Karl Marx
b. Joseph Stalin
c. Vladimir Lenin
d. Friedrich Engels
Which is the following is a private organization that attempts to influence public officials to act or vote in ways that will benefit the groups member?
A. market research group
B. free enterprise group
C. public policy group
D. interest group
The government uses its powers to make sure that businesses disclose information to the
public to make __________.
a. buyers more knowledgeable and safer
b. it hard for businesses to make an excess profit
c. it easier for consumers to save money
d. it easy for businesses to have good information
What is the motivating force behind the free market?
a. competition
b. the invisible hand
c. self-interest
d. specialization
What is the function of an economic system?
a. to make sure all people have equal access to goods
b. to produce and distribute goods and services
c. to give all producers the same access to consumers
d. to make sure people are paid for their labor
What is the most effective way for consumers to make their desires known to businesses?
A. through mail and phone surveys
B. by protesting and boycotting products
C. by the purchases they make
D. by hiring lobbyists and joining consumers
the method used by society to produce and distribute goods and services
Economic System
one’s own personal gain
the income people receive for supplying such things as land, labor, or capital
factor payments
a situation in which households purchase the goods and services that firms produce
product market
to sell a state-run firm to individuals
a large Soviet farm leased from the state to groups of peasant farmers
the doctrine that government generally should not intervene in the marketplace
laissez faire
level of economic prosperity
standard of living
government programs that protect people experiencing unfavorable economic conditions
safety net
an economic system that permits the conduct of business with minimal government intervention
free enterprise
an expectation that encourages people to behave in a certain way
an economic system that relies on habit, custom, or ritual to decide questions of consumption and
production of goods and services
traditional economy
a philosophy based on the belief that democratic means should be used to distribute wealth evenly
throughout a society
requiring strict obedience to someone such as a dictator
a range with no clear divisions
a period of change in an economy
Which of the following is a condition that most people would NOT expect the safety net
of the government to provide for?
a. Injuries
b. Joblessness
c. Natural disasters
d. Low income
Which of the following is characteristic of a traditional economy?
a. Communities tend to be growing fast.
b. They are usually based on light industrial production.
c. They have a high standard of living.
d. Children tend to have the same jobs as their parents did.

Need essay sample on "Economics – Chapter 2 & 3"? We will write a custom essay sample specifically for you for only $ 13.90/page

Can’t wait to take that assignment burden offyour shoulders?

Let us know what it is and we will show you how it can be done!
Sorry, but copying text is forbidden on this website. If you need this or any other sample, please register

Already on Businessays? Login here

No, thanks. I prefer suffering on my own
Sorry, but copying text is forbidden on this website. If you need this or any other sample register now and get a free access to all papers, carefully proofread and edited by our experts.
Sign in / Sign up
No, thanks. I prefer suffering on my own
Not quite the topic you need?
We would be happy to write it
Join and witness the magic
Service Open At All Times
Complete Buyer Protection
Plagiarism-Free Writing

Emily from Businessays

Hi there, would you like to get such a paper? How about receiving a customized one? Check it out https://goo.gl/chNgQy

We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy