Economics Ch.1-2

A ____ economy is an economic system in which people, families, clans, or tribes produce and distribute goods according to customs.

• command

• market

• traditional

A ____ economy is an economic system in which the government plans and makes all economic decisions.

• traditional

• market

• command

A ____ economy is an economic system in which individual choice and voluntary exchange without government regulations direct economic decisions.

• traditional

• market

• command

Adam Smith's The Wealth of Nations (1776) describes the benefits of a _____ economic system.

• command

• traditional

• market

A centrally-planned economy is an example of a ____ economy.

• command

• market

• traditional

Socialism and communism are examples of _____ economies.

• command

• market

• traditional

The Communist Manifesto was written in 1848 by Friedrich Engels and ______.

• Vladimir Lenin

• Fidel Castro

• Joseph Stalin

• Karl Marx

_____ is an economic system based on private ownership of factors of production.

• capitalism

• socialism

• communism

Laissez-faire is a French term loosely meaning "leave things alone" that means the government should ______.

• not interfere in the economy at all

• regulate the economy when needed

• strictly regulate the economy

• be lazy at the fair

Capitalism and market economies are characterized by the concept of _______, which means fair prices naturally set themselves due to multiple people/businesses producing the same product/service.

• profit

• competition

• exchange