Economic Systems Exam Review

the doctrine that the government should not intervene in the marketplace

• free enterprise

• laissez faire

• socialism

• collective

the total value of all final goods and services produced in a particular economy

• profit

• gross domestic product (GDP)

• invisible hand

• heavy industry

a range with no clear divisions; in economics, the range of economic systems with varying mix of government control and economic freedom

• mixed economy

• economic system

• gross domestic product (GDP)

• continuum

large farms leased from the state to groups of peasant farmers

• private property

• communism

• ranch

• collectives

period of change in which an economy moves away from a centrally planned economy toward a market-based system

• transition

• collective

• continuum

• laissez faire

market-based economic system with limited government involvement

• free market economy

• command economy/centrally planned

• mixed economy/modern economy

• traditional economy

Which of the following was a free market philosopher?

• Karl Marx

• Adam Smith

• Lou Engle

• Joseph Goebbels

Suppose there is a family in which all the boys are expected to become farmers when they are adults, just as their fathers and grandfathers did. In which kind of economy do they participate?

• Chinese Marketplace

• false economy

• traditional economy

• command/centrally planned economy

Which of the following goals is the attempt in a pure communist system?

• economic freedom

• economic efficiency

• economic growth

• economic equity

What is one of the most important advantages of a free market?

• it can change rapidly

• it encourages growth

• it is easy to regulate

• it protects the less fortunate