Chapter 2 questions

a combination of private enterprise working through the marketplace and government regulation, taxation and programs is called: _____________________

• market economy

• mixed economy

A __________ is a mechanism through which buyers and sellers interact to determine prices and exchange goods, services and assets.

• market

• market equilibrium

• demand

A ___________________ represents a balance among all the different buyers and sellers.

• market equilibrium

• market supply

The dual monarchs that help shape the economy are _____________________.

This occurs when people and countries concentrate their efforts on a particular set of tasks.

• trade

• specialization

• division of labor

-_________________ in an economy meanos it is useful to divide production into a number of small specialized steps or tasks rather than to have everyone work in a mediocre way.

What is the difference between money and capital?

The 3 main economic functions of a government in a market economy are:

______________________ occurs when a buyer or seller can affect a good´s price.

• perfect competition

• imperfect competition

A Market in which no firm or consumer is large enough to affect the market price is called: ______________________

• perfect competition

• imperfect competition