PFL - Unit 2 Vocabulary #2

What is the definition of an Economic System?

• A system where the government controls all industries

• The way a society organizes the production, distribution, and consumption of goods and services

• A system where private individuals own all resources

• The exchange of goods and services in a market

Which type of economy involves the government making all major decisions about production and distribution?

• Market Economy

• Mixed Economy

• Command Economy

• Free Enterprise

What is a Market?

• A place where only goods are exchanged

• A system where buyers and sellers exchange goods, services, or resources

• A government-controlled area for trade

• A place where only services are exchanged

In which type of economy are decisions about production and prices determined mainly by supply and demand?

• Command Economy

• Market Economy

• Mixed Economy

• Socialism

What is Capitalism?

• An economic system based on government ownership of resources

• An economic system based on private ownership of resources and businesses

• A system where the government controls all economic activity

• A system with no competition

What are Mixed Economies?

• Economies with only private ownership

• Economies with only government involvement

• Economies that combine features of both market and command economies

• Economies with no private ownership

What is Communism?

• A system where private individuals control all property

• A political system where the government owns all property and controls all economic activity

• A system with no government involvement

• A system based on voluntary exchange

How is GDP per Capita calculated?

• Total goods produced divided by total land area

• Total goods and services produced divided by the population

• Total income divided by total population

• Total services produced divided by total population

What does Privatization involve?

• Government taking control of private industries

• Transferring government-owned businesses to private ownership

• Increasing government control over businesses

• Eliminating private ownership

What is Nationalization?

• Privatizing government-owned businesses

• Government taking control of private industries

• Reducing government control over industries

• Allowing free enterprise