Economic Systems Review Flashcard

Front

What is the perspective of the following quote:

"POVERTY AND SUFFERING ARE NOT DUE TO THE UNEQUAL DISTRIBUTION OF GOODS AND RESOURCES BUT TO THE UNEQUAL DISTRIBUTION OF CAPITALISM"

Back

Pro-capitalist because he suggests that hardships are lessened if capitalism is more universally implemented

Front

By pursuing his own interest, he frequently promotes that of the society more effectually than when he really intends to promote it. The author of the quote would believe that self interest...

• Creates economic instability
• Encourages class struggle
• Creates broad based prosperity
• Encourages the exploitation of resources

Back

Creates broad based prosperity

Front

Which of the following is NOT one of the questions that ALL economic systems answer? What will we produce?, How will we produce it?, For whom will it be produced?, When does production start?

Back

When does production start?

Front

In which economic system is ALL property owned by individuals?

Back

Market Economy

Front

What is capitalism?

Back

private control of production and goods for profit

Front

Laissez-faire means...

Back

Hands off

Front

According to the law of supply and demand, how does the scarcity of a product that is in high demand affect prices?

Back

Scarcity of a high demand product increases the market value of the product.

Front

According to the law of supply and demand, how does over-manufacturing of a product affect the price?

Back

Over-manufacturing reduces the price of a product.

Front

What does communism believe in?

Back

Economic equality through elimination of private property.

Front

Who wrote "The Wealth of Nations" and believed the government should have a limited role in business?

Back

Adam Smith