Ch1-3 Review #2

Which statement describes a disadvantage of a command economy?

• ​Items tend to be produced solely for the sake of profit.

• ​It cannot “change direction” easily if the need arises to do so.

• ​It does little to help the less advantaged obtain the goods and services they need.

• ​Nothing stops the government from producing things that people don’t need or want.

Which of the following is a disadvantage of a market economy?

•   ​It sustains a high degree of uncertainty.  

• ​It restricts to personal freedom.

•  ​It discourages creativity and new ideas for doing things.  

•   ​It does not allocate resources as efficiently as other types of economies.

What kind of economy offers uniformity in wages regardless of individual productivity? 

•   ​all economies  

• ​traditional economies

•   ​command and socialist economies

•  ​market and free-enterprise economies

Which of the statements best describes the communist ideal?

•    ​a classless society in which everyone works for the common good  

•   ​a classless society in which workers are motivated by financial incentives  

• ​a society in which the working class is motivated by incentives to produce goods  

• ​a society in which a small ruling class administers resources for the common good

Who did Karl Marx believe would be the beneficiaries of socialism?

•   ​property owners

•  ​the government  

• ​workers  

• ​capitalists

Who is said to have “sovereignty” over a free market?

•     ​government  

• ​consumers  

•   ​entrepreneurs

•   ​businesses

 ​A state government builds a highway. This is an example of government fulfilling its role as what?

•   protector  

•   ​provider  

•   ​regulator  

• ​consumer

​One of the characteristics of a capitalist free enterprise economy is

 

• ​the minimum wage.  

• ​consumerism.  

• ​voluntary exchange.

•  ​central planning.

The economic system of the United States is considered a

•    ​free market capitalist economy.  

• ​command economy.  

•   ​socialist economy.  

• traditional economy.

Which of the following is largely responsible for the growth of a free enterprise system?

•   government  

• .  ​profit motive   

• ​Gross Domestic Product  

• ​market efficiency