Econ Ch. 2 Review

The allocation of resources towards science and engineering in communist (command) Soviet Russia during the Cold war is an example of an economy answering which of the following questions.

• What to produce?

• How to produce it?

• Who to produce it for?

A traditional economy in which farming to produce food for YOUR FAMILY is answering which of the following questions?

• What to produce?

• How to produce?

• Who to produce it for?

In a market economy a company builds factories to make shoes. This is answering which of the following questions?

• What to produce?

• How to produce?

• Who to produce it for?

An economy in which a central authority makes the economic decisions for a country or society best describes a

• Traditional Economy

• Command Economy

• Market Economy

• Mixed Economy

An economy in which the questions of production comes from values, tradition, or customs.

• Traditional Economy

• Command Economy

• Market Economy

• Mixed Economy

An economy that answers the questions of production based on individuals making their own decisions best describes a

• Traditional Economy

• Command Economy

• Market Economy

• Mixed Economy

An economic system in which private citizens own factors of production.

• Capitalism

• Socialism

Political and Economic system in which all property is collectively owned, not private. (Extreme form of Socialism)

• Capitalism

• Monopoly

• Social Security

• Communism

Lowest legal wage that must be paid to a person for work.

• Fixed income

• Minimum Wage

• Price Setting

• Price Fixing

The general rise of price for goods/services.

• Profit motive

• Competition

• Inflation

• Sovereignty