Unit 2 Economic Systems Exam Review

Each of the following are elements of a traditional economic system EXCEPT for one. Which one would not be found in traditional economics?

• government provides care for the disabled

• men are hunters

• children learn skills and knowledge from family, complete work and chores to help the family

• mothers raise children and tend to crops

What role do the wants and needs of citizens play in a command economic system?

• they are the driving force of a command economy

• they are rarely considered in a command economy

• as long as it fits as a need for survival of the group, it will be provided

Cuba, North Korea, The Republic of China, and Russia have all had _____ economic system.

• market

• free enterprise

• traditional

• command

What drives a market economy?

• consumers and producers

• customs and traditions

• government

• fairness and equality of social classes

Select all of the ways self interest plays a role in a market economy. (more than 1)

• consumer sovereignty

• profit motive

• specialization

• public goods and services

What are the 3 questions every society must answer when determining its economic system? (more than 1)

• What will be produced?

• How will it be produced?

• Where will it be produced?

• Who is going to have access to what is produced?

What was occurring during Karl Marx's time that led him to his economic philosophy? (more than 1)

• industrialists and the upper class grew rich while workers remained poor

• bank runs and stock market collapse

• unfair treatment of workers and lower social classes

• communism

What did Karl Marx believe was going to be a logical outcome of the struggle occurring between business owners and workers?

• the business owners would increase wages for workers

• the workers would rise up and revolt against the upper class

• the government would create minimum wage laws

• the workers would quit their jobs, forcing businesses to go bankrupt

Karl Marx was the author of two books that explained his philosophies about government, social classes, and the economy. What were the books? (more than 1)

• Das Kapital

• Inquiry Into the Wealth of Nations

• The Communist Manifesto

• Mein Kampf

The rights of individuals and groups to own businesses and resources is known as _____.

• self interest

• free enterprise

• nationalized

• private property rights