Economics Ch. 2

An organized way of providing for the wants and needs of a society

• Economic System

• Traditional Economy

• Command Economy

• Market Economy

political and economic system in which the factors of production are owned and controlled collectively by the state

• socialism

• communism

• monopoly

• The robber barren state

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

• Consumer satisfaction is low

• It limits freedom for producers and consumers

• It does not provide for everyone

• It limits private property rights

Which of the following societies is an example of a traditional economy

• North Korea

• Australian Aborigines

• Germany

• South Africa

What type of economy was characteristic of the communist bloc countries of the former Soviet Union

• a traditional economy

• a command economy

• a market economy

• a free enterprise economy

Who would you most likely find participating in a market economy

• a government official deciding how much corn to plant this season

• a teenage girl deciding how to spend the extra money she earned working overtime

• a hunter deciding what to hunt to feed his family

• a worker deciding to leave his job early because the production quota has been met

An economic goal that is based on the desire of people to make their own decisions

• economic freedom

• economic efficiency

• economic stability

• Demand

A rise in the general level of prices

• social security

• gross income

• inflation

• influx

Economic goals are important because they

• tell us WHAT and

  HOW to produce

• Answer the FOR WHOM to produce question

• help us determine if our economic system is meeting our needs

• tell the government what kinds of regulations are needed

Which is an example of economic growth?

• When a new ball bearing plant opens; 1,500 jobs are created

• the price of vegetables increases sharply in the spring

• An employer is fined for refusing to hire women to fill new job openings

• a man decides to quit working as a waiter and begins a career in marketing