Unit 2 Review

What part of the economic spectrum would you find North Korea?

• On the left

• On the right

• In the middle

• It is traditional so it is not on the spectrum

Adam Smith's laissez-faire theories are most closely associated with

• the separation of church and state
• minimal government regulation of the economy
• a command economy
• high tariffs to protect domestic businesses

The economic theory of laissez-faire capitalism proposes that

• command economies should provide the greatest opportunity for national growth
• the practices of mercantilism should be expanded
• governments should not interfere with business
• the nobility should have strict control over business and industry

Laissez-faire practices are most closely associated with a

• command economy
• traditional economy
• mixed economy
• market economy

Which speaker is referring to laissez-faire capitalism?

• Speaker A
• Speaker B
• Speaker C
• Speaker D

Ideally, we wouldn’t have separate classes such as rich, middle class, and poor.

• capitalism

• socialism/communism

• mixed ecnomy

Quality and wide variety of products would not be possible without a free market system.

• capitalism

• socialism/communism

• mixed economy

If you regulate businesses, it will stifle (stop) growth and innovation.

• capitalism

• socialism/communism

• mixed economy

As the opportunity cost of college increases compared to the benefits, a person is

• more likely to attend college

• less likely to attend college

• unaffected by the change

• cannot predict

The marginal cost of something is

• never greater than the marginal benefit

• the opportunity cost minus the actual cost

• the cost to produce one additional unit

• an intangible resource