Econ Ch 3 Review

political and economic system in which all property and wealth is collectively owned by all members of society; the final stage of socialism in Marxist theory

• communism

• socialism

• capitalism

• mixed economy

Answer explanation

The types of communism that have been used by different leaders, countries, and groups include anarchist communism, anti-revisionism, Castroism, Council, Euro, Guevarism, Ho Chi Minh Thought, Juche, Left, Leninism, Luxemburgism, Marxism-Leninism, Christian Religious, Socialism with Chinese characteristics, Titoism, and Trotskyism

a diagram that shows the movement of money, resources, and goods and services among households and producers in an economy

• circular flow

• production possibilities frontier

• pie chart

• supply and demand

Answer explanation

an economic system in which economic decisions are left up to individual producers and consumers

• traditional economy

• market economy

• command economy

• mixed economy

Answer explanation

Hong Kong, Switzerland, and Ireland are considered to be the best examples of free market economies.

an economic system in which both the government and individuals play important roles in production and consumption.

• traditional economy

• command economy

• mixed economy

• market economy

a market in which firms sell goods and services to households

Answer explanation

The Mall of America has more than 520 stores, 50 restaurants, and a theme park. Yeah, a theme park.

a market where factors of production are exchanged

government payment to households or firms for which the payer receives no good or service in return

Answer explanation

the covid stimulus payment is an example of a transfer payment. The government sent checks totaling over $250 billion. Most Americans got payments of $1200.

moneys earned by firms or businesses

Answer explanation

in 2019, corporations in the United states earned 2.25 trillion dollars in total revenues.

moneys earned by individuals contributing to the factor market

Answer explanation

Personal income increased to about 18.6 trillion U.S. dollars in 2019.

focusing on maximizing factors of production for best results.

• economic efficiency

• economic freedom

• economic equity

• economic stability

• economic growth