12.1 Review

What are the factors of production in an economy?

• Profit, Competition, and Ownership

• Land, Labor, and Capital

• Money, Goods, and Services

• Supply, Demand, and Price

What is the role of an entrepreneur in a capitalist economy?

• To eliminate competition

• To produce goods and offer services

• To distribute wealth evenly

• To regulate prices

What is a monopoly in a capitalist economy?

• A government-controlled industry

• A combination of corporations to eliminate competition

• A market with free buyers and sellers

• A classless society

What is the law of supply and demand in a free market?

• Prices tend to rise when demand drops

• Prices tend to fall when supplies become more plentiful

• Prices tend to fall when demand increases

• Prices tend to rise when supplies become more plentiful

What is the main role of the U.S. government in a capitalist economy?

• To promote socialism

• To encourage monopolies

• To regulate the economy

• To eliminate private enterprise

What is the main goal of socialism in terms of public welfare?

• To guarantee high taxes

• To equally distribute retirement pensions

• To encourage private ownership

• To promote monopolies

What is the main difference between socialism in Europe and developing countries?

• Europe promotes communism

• Developing countries have more private ownership

• Developing countries have high taxes

• Europe is growing while developing countries are waning

What was the main economic system in Russia under Josef Stalin?

• Capitalism

• Socialism

• Communism

• Laissez-faire

What is the main characteristic of a command economy?

• Lack of basic freedoms

• Promotion of private enterprise

• Encouragement of individual initiative

• Minimal bureaucracy

What was the main goal of China's Communist Party during the Great Leap Forward?

• To encourage private enterprise

• To modernize China quickly

• To promote individual initiative

• To dismantle state-owned companies