ECONOMICS CHAPTER 2: ECONOMIC SYSTEMS QUESTIONS
AND GRADED ANSWERS, 100% GUARANTEE
economic system - the way a society uses resources to satisfy its people's wants
traditional economy - an economic system in which people produce and distribute goods
according to customs handed down from generation to generation
command economy - an economic system in which the government makes all economic
decisions
market economy - an economic system in which individual choice and voluntary
exchange direct economic decisions
centrally planned economy - a system in which central government officials make all
economic decisions
socialism - an economic system in which the government owns some or all of the factors
of production
communism - economic system in which the government owns all the factors of
production and there is little to no political freedom
authoritarian - systems require absolute obedience to those in power
private property rights - are the rights of individuals and groups to own businesses and
resources
market - any place where people buy and sell goods and services
, laissez faire - the principle that the government should not interfere in the marketplace
capitalism - is an economic system that is based on private ownership of the factors of
production
voluntary exchange - is a trade in which both traders believe that what they are getting is
worth more than what they are giving up
profit - a financial gain that a seller makes from a business transaction
competition - involves all the actions sellers, acting independently, do to get buyers to
purchase their products
consumer sovereignty - the idea that consumers have the ultimate control over what is
produced because they are free to buy what they want and to reject what they don't want
specialization - a situation in which people concentrate their efforts in the activities that
they do best
mixed economy - an economy that has elements of traditional, command, and market
systems
nationalize - means to change from private ownership to government or public ownership
privatize - means to change from government or public ownership to private ownership
global economy - refers to all the economic interactions that cross international
boundaries
AND GRADED ANSWERS, 100% GUARANTEE
economic system - the way a society uses resources to satisfy its people's wants
traditional economy - an economic system in which people produce and distribute goods
according to customs handed down from generation to generation
command economy - an economic system in which the government makes all economic
decisions
market economy - an economic system in which individual choice and voluntary
exchange direct economic decisions
centrally planned economy - a system in which central government officials make all
economic decisions
socialism - an economic system in which the government owns some or all of the factors
of production
communism - economic system in which the government owns all the factors of
production and there is little to no political freedom
authoritarian - systems require absolute obedience to those in power
private property rights - are the rights of individuals and groups to own businesses and
resources
market - any place where people buy and sell goods and services
, laissez faire - the principle that the government should not interfere in the marketplace
capitalism - is an economic system that is based on private ownership of the factors of
production
voluntary exchange - is a trade in which both traders believe that what they are getting is
worth more than what they are giving up
profit - a financial gain that a seller makes from a business transaction
competition - involves all the actions sellers, acting independently, do to get buyers to
purchase their products
consumer sovereignty - the idea that consumers have the ultimate control over what is
produced because they are free to buy what they want and to reject what they don't want
specialization - a situation in which people concentrate their efforts in the activities that
they do best
mixed economy - an economy that has elements of traditional, command, and market
systems
nationalize - means to change from private ownership to government or public ownership
privatize - means to change from government or public ownership to private ownership
global economy - refers to all the economic interactions that cross international
boundaries
