Chapter 2 Econ Review

Who owns the resources in a Capitalist or Free Market economy?

• Government

• Private Individuals

• Both Government and Individuals

• None of the above

How are prices determined in a capitalist economy?

• by the government

• by the producers

• by the forces of demand and supply

• by the consumers

Which economic system promotes competition?

• Communism

• Capitalism

• Socialism

• Traditional

Invisible hands is

• the name of Adam Smith's Book

• invisible forces that move the economy

• the government force over the market

• The unnamed organization pulling the strings

Capitalism

• global trading of people, goods, technology, ideas and disease

• economic system in which money is invested in businesses to make profit

• settlement of people living in a new territory controlled by their home country

Who came up with the idea of capitalism in their book, The Wealth of Nations?

• Charles Marx

• Adam Smith

• Donald Trump

• Thomas Sowell

the part of Capitalism that naturally made for low prices and high quality

• Competition

• Government control

• Guilds

• Fixed wealth

what provides for the needs of society in Capitalism?

• Invisible Hand

• Foot Binding

• Golden Hand

• Mercantilism

a lack of resources or goods and services which forces individuals to make choices in a marketplace

• Scarcity

• Capital Resources

• Command Economy

• Consumption

When choosing to do one thing, a choice of not doing the other thing is also made. This is called an--

• entrepreneurship resource

• economic system

• opportunity cost

• equilibrium price