Econ Chapter 2 2024/2025 Exam
Questions and Corresponding Answers
with Surety of 100% Pass Mark
Authoritarian - 🧠ANSWER ✔✔A government in which one leader or group
of people holds absolute power.
centrally planned economy - 🧠ANSWER ✔✔an economy in which the
government decides how economic resources will be allocated
command economy - 🧠ANSWER ✔✔an economy in which production,
investment, prices, and incomes are determined centrally by a government.
Communism - 🧠ANSWER ✔✔A theory or system of social organization
based on the holding of all property in common, actual ownership being
ascribed to the community as a whole or to the state.
competition - 🧠ANSWER ✔✔the struggle among producers for the dollars
of consumers
consumer sovereignty - 🧠ANSWER ✔✔the situation in an economy where
the desires and needs of consumers control the output of producers.
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
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PRIVACY STATEMENT. ALL RIGHTS RESERVED
, economic system - 🧠ANSWER ✔✔the method used by a society to
produce and distribute goods and services
economic transition - 🧠ANSWER ✔✔a period of change in which a nation
moves from one economic system to another
factor market - 🧠ANSWER ✔✔market in which firms purchase the factors
of production from households
firm - 🧠ANSWER ✔✔an organization that uses resources to produce a
product, which it then sells
free enterprise system - 🧠ANSWER ✔✔an economic system characterized
by private or corporate ownership of capital goods
free market economy - 🧠ANSWER ✔✔an economic system in which
decisions on the three key economic questions are based on voluntary
exchange in markets
household - 🧠ANSWER ✔✔a person or group of people living in the same
residence
incentive - 🧠ANSWER ✔✔a positive or negative environmental stimulus
that motivates behavior
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
2
PRIVACY STATEMENT. ALL RIGHTS RESERVED
Questions and Corresponding Answers
with Surety of 100% Pass Mark
Authoritarian - 🧠ANSWER ✔✔A government in which one leader or group
of people holds absolute power.
centrally planned economy - 🧠ANSWER ✔✔an economy in which the
government decides how economic resources will be allocated
command economy - 🧠ANSWER ✔✔an economy in which production,
investment, prices, and incomes are determined centrally by a government.
Communism - 🧠ANSWER ✔✔A theory or system of social organization
based on the holding of all property in common, actual ownership being
ascribed to the community as a whole or to the state.
competition - 🧠ANSWER ✔✔the struggle among producers for the dollars
of consumers
consumer sovereignty - 🧠ANSWER ✔✔the situation in an economy where
the desires and needs of consumers control the output of producers.
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
1
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, economic system - 🧠ANSWER ✔✔the method used by a society to
produce and distribute goods and services
economic transition - 🧠ANSWER ✔✔a period of change in which a nation
moves from one economic system to another
factor market - 🧠ANSWER ✔✔market in which firms purchase the factors
of production from households
firm - 🧠ANSWER ✔✔an organization that uses resources to produce a
product, which it then sells
free enterprise system - 🧠ANSWER ✔✔an economic system characterized
by private or corporate ownership of capital goods
free market economy - 🧠ANSWER ✔✔an economic system in which
decisions on the three key economic questions are based on voluntary
exchange in markets
household - 🧠ANSWER ✔✔a person or group of people living in the same
residence
incentive - 🧠ANSWER ✔✔a positive or negative environmental stimulus
that motivates behavior
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
2
PRIVACY STATEMENT. ALL RIGHTS RESERVED
