Economics Chapter 2

Which of the following is true about a centrally planned economy?

• Central Government owns all land and capital

• Central Government makes all economic decisions

• Each person is assigned a job

• All are true about Centrally Planned Economies

Which of the following are NOT one of the three economic questions?

• What goods and services should be produced?

• How should these goods and services be produced?

• • Who consumes these goods and services?

• What should the tax rate be for goods and services?

Specialization makes an economy more efficient

• True

• False

Which of the following is NOT true about a free market economy?

• It breeds competition

• It encourages growth

• It ensures economic equality for all citizens

Which Economic thinker/philosopher would be known as a believer in the Free Market?

• Adam Smith

• Karl Marx

• Fredrich Engels

In a traditional economy...

• Custom and Traditions dominate decisions having to do with the economy

• Technology and innovation are paramount

• Goods and services are sold around the globe

• All of the above

the method used by society to produce and distribute goods and services is known as...

• Opportunity Cost

• Supply and Demand

• Economic System

• Economic Freedom

Adam Smith said that this was the motivating force in a free market

• Self Interest

• Goodwill

• Compeition

• Specialization

In Adam Smith's "Laissez Faire" Economy, which of the following is true?

• Government needs to have a HUGE role in the economy

• Government needs to have NO role in the economy

In a centrally planned economy...

• Government ensures it's people have jobs

• The needs of consumers are generally not met

• Workers lack incentive to innovate

• All of the above are true in a centrally planned economy