Ch 2 Economic Systems

Front

Are transitional economies based primarily on custom and religion?

Back

False

Front

In command economies, the government owns all resources.

Back

true

Front

Does the PPF model illustrate the production of consumer goods but not capital goods?

Back

false

Front

According to the law of comparative advantage, the worker with higher opportunity cost of producing a particular output should specialize in that output.

Back

false

Front

Which question does an economy NOT have to answer?

Back

How many goods and services will be produced?

Front

What does Adam Smith's metaphor of the "invisible hand" illustrate?

Back

promotes the general welfare and self-regulation

Front

A citizen complains that there is no way to enforce property rights, they most likely live in what type of economy? Options: Mixed, Command, Market, Traditional

Back

Market

Front

Is it more common to lean more towards a market economy or a command economy when going through a transitional period?

Back

market

Front

What do the points outside of the PPF indicate?

Back

unattainable combinations of goods

Front

Which situation might cause an inward shift in the production possibilities frontier? Options: A computer network shuts down due to a virus, More people earn bachelors degrees, A new machine that produces bread faster is invented, They announce a new source of oil.

Back

A computer network shuts down due to a virus