eQuizShow

Economics Chapter 2

Matching 1

Question: act of buyers and sellers freely and willingly engaging in market transactions
Answer: Voluntary exchange

Question: Incentive that encourages people and organizations to improve their material well being
Answer: profit motive

Question: organized way in which a society provides for the wants and needs of its people
Answer: economic system

Question: Economic system that has some combinations of traditional, command, and market economies
Answer: mixed economy

Question: extent to which individuals or organizations are better off at the end of a specific period that they were at the beginning
Answer: profit

Matching 2

Question: feature of capitalism that allows people to own and control their own possessions
Answer: private property rights

Question: Economic system in which private citizens own the factors of production
Answer: capitalism

Question: Federal program of disability and retirement benefits that covers most working people
Answer: Social Security

Question: Economic system in which a central authority makes most of the WHAT, HOW, and FOR WHOM decisions
Answer: command economy

Question: Does not increase even if prices go up
Answer: fixed income

Matching 3

Question: Role of the consumer as ruler of the economy
Answer: consumer sovereignty

Question: Economic system in which the allocation of resources and nearly all other economic activity stems from ritual, habit, or system
Answer: Traditional Economy

Question: struggle among seller to attract consumers
Answer: competition

Question: rise in the general level of prices
Answer: inflation

Question: The condition of the economy when the employment rate is lower than a certain percentage established by economists' studies
Answer: full employment

Mutiple Choice 1

Question: Which of the following is a characteristic of a traditional economy?

a. It discourages new ideas and new ways of doing things
b. Public services are available at little or no cost
c. It has a great deal of economic freedom
d. It provides workers with few incentives to work
Answer: a

Question: Which group of people ultimately detrmines the products that a free enterprise economy produces?
Answer: consumers

Question: The role of the government in a command economy is to
a. ensure the availability of consumer products
b. encourage entrepreneurs
c. make major economic decisions
d. promote economic freedom
Answer: c

Question: The United States can best be described as having a
a. modified free enterprise system
b. traditional system
c. command economy
d. pure free enterprise system
Answer: a

Question: Who plays one of the most important roles in the free enterprise system by starting new businesses?

Answer: entrepreneurs

Multiple Choice 2

Question: The minimum wage is an example of a federal law that supports
a. economic growth
b. economic equity
c. full employment
d. economic efficiency
Answer: b

Question: The concept of ______________ means people freely and willingly engage in market transactions

Answer: Voluntary exchange

Question: Which economic system can change direction quickly and drastically?

Answer: Command Economy

Question: Who would you most likely find participating in a market economy?
a. a government official deciding how much wheat to plant this year
b. a teenage girl deciding how to spend extra money she earned working overtime
c. a hunter deciding where to hunt to provide dinner for his family that night
d. a worker deciding to leave work because the quota for that day has been met
Answer: b

Question: Who plays all of the following roles- protector, provider, regulator, and consumer- in the United States?

Answer: government