Econ - Unit 2

What is the first of the 3 economic questions?

• What goods/services will be produced?

• How will the goods/services be produced?

• Who will consume the goods/services?

• Who will make the goods/services?

When are traditional economies successful?

• When it involves a large extended family.

• When everyone has as designated job.

• When they meet their own needs.

• When they get help from the gov't.

Which type of economy utilizes specialization?

• Traditional

• Free Market

• Centrally Planned

In a factor market, which way do the resources flow?

• From the firms to the households.

• From the households to the firms.

• From the households to the consumers.

• From the consumers to the firms.

What is one advantage of a centrally planned economy?

• Encourages innovation.

• Is successful when it meets its own needs.

• Responds efficiently to changing conditions.

• Can jump-start selected industries.

How what is the political system like in a socialist country?

• Can be a range of political systems.

• Purely democratic.

• Run by an authoritarian gov't.

• Run by an oligarchy.

What change did China go through in relation to their economic system?

• Open Change

• Economic Closure

• Economic Transition

• Economic Restructuring

Why do consumers play an important role in a free market system?

• They send signals to businesses.

• They provide workers for businesses.

• Businesses go to them for help.

What does a general level of prices indicate for an economy?

• Economic Citizenship

• Secure Financial Markets

• A Growing Economy

• Stability

What does increasing GDP mean for an economy?

• A stable economy.

• A growing economy.

• Maximum employment.

• Secure financial markets.