Ec. Ch. 2

The way a society uses scarce resources to satisfy its people's unlimited wants is called an economic

• system
• utility
• incentive
• grid

Absolute loyalty to the people in power is required by a(n)

• traditional system
• socialist system
• authoritarian system
• market system

In economic terms, property means

• everything an individual owns & their labor
• everything an individual owns but not their labor
• some things an individual owns & their labor
• some things an individual owns but not their labor

With voluntary exchange, a buyer and seller agree to do business together

• only for the benefit of the seller
• only for the benefit of the buyer
• for the mutual benefit of both
• for the benefit of neither

In a market economy, the real power in the market place is held by the

• producer
• seller
• government
• consumer

A circular flow model shows how

• all interactions occur in a market economy
• some interactions occur in a market economy
• all interactions occur in a traditional economy
• some interactions occur in a traditional economy

An advantage of a pure market economy is that it

• has mechanisms for providing public goods
• allows local communities to set their own economic development
• provides security to those who are not economically productive
• prevents unequal distribution of wealth

Suppliers in a product market are

• individuals
• governments
• businesses
• households

The nation where the government plays the most limited role in the economy is 

• North Korea
• Sweden
• China
• the United States

Global financial transactions have been made quick, inexpensive, and easy by

• computer linkages
• telegraph linkages
• radio linkages
• rail linkages