Introduction to Business_Chapter 3 Review

Front

What is the primary focus of capitalism?

Back

Private ownership

Front

Which of the following best describes socialism? Free markets and competition, Private property rights, Government ownership of essential services, Limited government intervention

Back

Government ownership of essential services

Front

Why are private property rights important in a capitalist system?

Back

They incentivize innovation.

Front

What does GDP measure?

Back

Total value of all goods and services produced

Front

What is fiscal policy primarily concerned with?

Back

Government spending and taxation

Front

How is the unemployment rate calculated?

Back

Number of unemployed people divided by the labor force

Front

What is inflation?

Back

A rise in prices

Front

What does the law of supply and demand state?

Back

Price is determined by the interaction of supply and demand.

Front

Which of the following describes a mixed economy? Complete government control, Total private ownership with no regulation, Elements of both capitalism and socialism, A fully planned economy

Back

Elements of both capitalism and socialism

Front

What characterizes perfect competition?

Back

Many buyers and sellers