Economics- Chapter 2- Assessment

The government owns some, but not all, factors of production in a(n) ___________

• Communist system

• Authoritarian system

• Socialist system

• Pure market system

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

• Incentive

• Grid

• System

• Utility

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

• Government

• Producer

• Consumer

• Seller

Between 1867 and 1894, Karl Marx published a 3- volume study called ______

• The Wealth of Nations

• The Communist Manifesto

• Laissez Faire

• Das Capital

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

• Only for the benefit of the buyer

• Only for the benefit of the seller

• For the benefit of neither

• For the mutual benefit of both

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

• Authoritarian system

• Market system

• Traditional system

• Socialist system

In a ________, the three basic economic questions of what to produce, how to produce, and for whom to produce are answered in the same way they have been for generations.

• traditional economy

• command economy

• market economy

• mixed economy

Each modern economy is also a part of the ________ , which entails all the economic interactions that cross international borders

• mixed economy

• global economy

• command economy

• market economy

In transition between types of economic systems, the government may ______ industries, taking them out of private ownership.

• market

• privatize

• nationalize

• public

A market economy tests on private ownership, however, so _______ guaranteed by the government are vitally important.

• private property rights

• limited government involvement

• voluntary exchange

• consumer sovereignty