Economic Systems| 28 Questions and Answers (A+ Solution guide)

stability - Which economic goals is most important in a traditional economy? No productive resources are left unused. - Why are economies most efficient when they have full employment? the way that markets coordinate trade - What does Adam Smith's idea of an "invisible hand" represent? a factor payment in the circular flow model - The hourly wage a store pays to a clerk is an example of what? Central planners could not manage every detail. - Why did the Soviet Union experience many surpluses and shortfalls? mixed - Which kind of economy is most common today? a transfer payment - A Social Security check is an example of what? Its answer is based on the importance it attaches to various economic goals and societal values. - How does a society answer the three economic questions about the production and consumption of goods and services? a command economy - What is the economic system in which government owns all land and capital, makes all economic decisions, and assigns each person a job? to provide for things that the marketplace does not address. - Why does even a free market economy need some government intervention?