In a pure market economy, market forces coordinate production as if by an "invisible hand."

The United States is a mixed economy, but markets play a relatively large role.

A traditional economy is shaped largely by custom or religion.

Any movement along the PPF (production possibilities frontier) involves produce less of one good to produce more of the other.

An outward shift of the PPF (production possibilities frontier) reflects an economic downturn.

In a market economy, what rights give resource owners the freedom to use their resources as they see fit?

Which of the following is NOT true of a pure market economy?

An economic system is the set of mechanisms and institutions that resolve the what, how, and for whom questions that all economies must answer.

An economic system in which all resources are government-owned and all production is directed by the central plans of government is known as a 

The economy of the United States can be described as

Transitional economies are in the process of 

In a pure market economy, firms do not produce public goods because

An example of a public good, in an economic context, is 

Suppose a steel factory pollutes the water that local residents must drink, but the market price of steel fails to reflect such costs. Because the pollution costs are outside the market transaction, they are called

Which factor might best help an economy grow?

The law of comparative advantage helps explain

Being able to make something using fewer resources than other producers require would give you a(n)

The main medium of exchange in the United States is

Most economies today are

Which of the following is a problem with pure command economies?

Which type of economy produces the highest standard of loving for its citizens?

Converting government enterprises into private enterprises is a process called

According to Adam Smith, although each individual pursues his or her self-interest in a market economy, the "invisible hand" o ____ promotes the general welfare.

__ occurs when individual workers focus on single tasks, enabling each worker to become more efficient and productive.

According to the law of comparative advantage, the worker with the lower ___ of producing a particular output should specialize in that output.

A system of exchange in which products are traded directly for other products is 

__ serves as a medium of exchange because it is the one thing that everyone is willing to accept in exchange for all goods and services.

The ___ organizes the production process so that each worker specializes in a separate task.

__ assures resource owners that they have the use of their resources and are free to supply those resources to the highest bidder.

Private firms do not produce so-called ___, such as national defense.

A command economy is sometimes called ___.

The law of increasing opportunity cost states that each additional unit of one good requires the economy to give up successively larger increments of the other good.

What  could shift an economy's PPF?

What do points inside the PPF represent?

What do points outside the PPF represent?

What is the role of entrepreneurs in a pure command economy?