Unit 2 Practice Flashcard

Front

What two factors do all three economic questions concern?

Back

Goods and Services

Front

What is a Safety Net?

Back

A set of Government programs that protect people who face unfavorable economic conditions.

Front

The Industrial Revolution led to immense economic growth

Back

True

Front

What is a Market?

Back

Any arrangement that allows buyers and sellers to exchange things

Front

What is a Free Market Economy?

Back

Economic system in which the three basic economic questions are based on voluntary exchange in markets

Front

What is another name for a free market economy?

Back

Capitalist Economy

Front

Which country is known for having a free market economy?

Back

United States

Front

Who are the two participants in a free market economy?

Back

Households and Firms

Front

Which historical figure is known for coining the term "The Invisible Hand"?

Back

Adam Smith

Front

Specialization leads to efficiency in land, labor, and capital

Back

True