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WorksheetsMagruder 23.1 (Economic Systems Compared)
Total questions: 30
Worksheet time: 15mins
What is the best definition of economics?
How power is distributed in society.
How representation is determined in society.
How goods and services are distributed in society.
The study of agriculture and geography.
Capitalism, Socialism and Communism are the 3 main forms of economic systems, but really there are only these two....
Socialist or Communist
Free or not free.
Stalinist or Leninist.
Democratic or Representative
What are the factors of production?
Lowest prime numbers.
Earth, wind and fire.
Animals, humans and machines.
Basic things needed to make goods and services.
Pick ALL the factors of production.
Labor
Land
Capital
Government
What are the people who do the work called?
Labor
The elite
Entrepreneurs
Management
What is the money, machines and buildings used to make stuff called?
Management
Entrepreneurs
Capital
Labor
What does "entrepreneur" mean?
An appetizer.
Capital of France.
An enterpriser.
Land, money and labor.
What does an entrepreneur, or enterpriser do?
Figure out ways to make money.
Works in a scientific laboratory.
Teaches in college.
Works in space.
What is the "Free Enterprise System" all about?
Slavery
Freedom
What is another way to say "Free Enterprise System?"
Command Economy
Socialism
Capitalism
Planned economy
What is the key of a "Free Market Economy?"
Central planning.
Government.
Individuals are free to chose.
The good of the nation.
What does Capitalism emphasize the most?
The right of the government to decide to protect the individual.
The right of the individual to decide, good or bad.
Who decides wages and prices in a "free market" or "capitalist" economy?
The state (government).
The individual.
In a free market economy, if you don't like your wages....
You are free to do whatever it is you want to do.
You can petition the state to have your wages raised.
In a free market economy you are free to...
You are free to sell what the state lets you for the price they determine.
Sell whatever you want for whatever price you wish.
What role does "competition" play in a free market?
Helps keep prices lower and products better.
It leads to high priced goods at a lower quality.
Profit, or the difference between the cost and selling price.....
Discourages production of goods.
Encourages production of the goods we like.
The law of supply and demand predicts that when supply is high....
Prices tend to be higher.
Price tend to be lower.
The law of supply and demand predicts that when demand is high....
Prices tend to be higher.
Prices tend to be lower.
When there are lots of bidders at an auction, bidding on the same item....
It usually sells at a higher price.
it usually sells at a lower price.
If there are few bidders, the selling price tends to be...
Higher.
Lower.
A monopoly is when one business...
fails and closes.
becomes super successful and takes over.
This is when a business has a secret agreement with others that creates a virtual monopoly.
Commonwealth
Franchise
Trust
Plandemic
Adam Smith wrote a book about this....
an invisible man.
an invisible hand.
a socialist revolution.
Adam Smith's "Invisible Hand" means that if the government just leaves people alone.....
They will arrange things for the best.
They will mess things up for the worse.
What kind of economic system best describes the U.S.A.?
Planned/Socialist.
Free Market/Capitalist
Mixed.
What does "Laissez Faire" mean?
Government hands off the economy.
Government must guide and correct the economy.
France prohibits workers from working more than 35 hours per week. Is this an example of "Laissez Faire?"
Yes.
No.
A proprietorship is a business owned by...
One individual.
Stock holders.
Government.
Partners.
A corporation is a business owned by...
One person.
The government.
Partners
Stock Holders.
