economics (h) chapter 2 review game economiesfree enterprise economic goals consumers &...
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Economics (H)
Chapter 2
Review Game
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Economies Free Enterprise
Economic Goals
Consumers & Entrepreneurs
Role of Government
MISC
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A1
Economic system where the allocation of scarce
resources is determined by ritual, custom, and habit.
Traditional Economy
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A2
Economic system in which a central authority makes
most of the economic decisions.
Command Economy
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A3
Profits and Private Property are least associated with:
Command Economy
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A4
Economic system in which people and firms act in their own best interests to answer
the economic questions.
Market Economy (Free Enterprise Economy)
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A5
When competing against other types of economies, what is the
largest disadvantage for a Traditional Economy?
This type of economy discourages new ideas and new
ways of doing things.
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A6
In the Inuit Tribe, what role did the successful hunter
have in the tribe?
He will share the spoils of his hunt to help with the
survival of the tribe.
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A7
Concerning the economic question of WHAT, what
advantage does a Traditional Economy offer?
Everyone knows which role to play.
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A8
Economic system in which decisions about how
resources should be used are made partly by the private sector and public sector.
Mixed Economy
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A9
The economic system of the North Korea and Cuba are a form of:
Command Economy
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A10
The United States is an example of:
Mixed Economy
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B1
In a Market Economy, goods typically go to those who:
Have the willingness and ability to purchase them.
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B2
In a Free Enterprise, why do individuals enter into
transactions?
Both the buyer and seller enter into a transaction only if both
are better off after the transaction.
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B3
In a Market Economy, if a firm uses a combination of
inputs that does NOT minimize costs, then:
The firm will lose sales, and then go out of business.
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B4
Capitalism is defined as an economic system which:
Individuals have ownership of all factors of production
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B5
In a Market Economy, what is meant by
consumers “casting their vote”?
Consumers “vote” for products they like by purchasing those
products.
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B6
One distinguishing feature between Capitalist countries
and NON-Capitalist countries is that:
Capitalist countries have private property rights and non-
capitalist countries do not.
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B7
What would NOT be consistent with
Pure Capitalism?
Government involvement in economic decisions.
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B8
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B9
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B10
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C1
What is meant by Economic Freedom?
People have the right to choose occupation, employer,
products, prices, etc…
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C2
What is meant by Economic Efficiency?
Due to scarcity, resources have to be used in the best
ways to maximize their benefits.
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C3
What is meant by Full Employment?
People want their economic system to provide as many
jobs as possible.
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C4
In a Free Enterprise, how does Competition benefit
consumers?
Through the struggle of among sellers, prices are
lower for consumers.
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C5
A rise in the general level of prices.
INFLATION
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C6
Federal program of disability and retirement benefits that covers most
working people.
Social Security
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C7
Federal program that provides health insurance for persons 65 or older.
Medicare
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C8
In order to combat Inflation, how does the
Federal Reserve Bank try to combat inflation?
Increase in IR, will decrease spending.
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C9
What is meant by Economic Growth?
Growth is needed so people can have more goods and services.
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C10
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D1
What is the role of the Entrepreneur in a Free Enterprise Economy?
By being risk-takers, they bring in new products and
production methods.
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D2
Bill Gates
Creator of Microsoft
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D3
Ray Kroc
Developer of McDonalds
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D4
Consumer Sovereignty
Consumers rule the economy “The Consumer is always right”
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D5
How do consumers determine which products
will be produced?
Consumers cast “votes” on which products to produce
by purchasing them.
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D6
Mary Kay Ash
Created a cosmetic company called Mary Kay Cosmetics
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D7
John Johnson
Created a publishing company called Johnson Publishing
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D8
Madame C.J. Walker
Created hair products, and became the first African-
American millionaire
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D9
What do successful entrepreneurs attract?
Successful entrepreneurs attract more firms into the
market (profits)
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D10
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E1
What is meant by the government being a
“protector”? (examples)
The government protects citizens from false advertising, unsafe products, and environmental
hazards.
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E2
Agency designed to protect consumers from unsafe food
and drugs.
Food & Drug Administration (FDA)
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E3
What is meant by the government being a
“regulator”? (examples)
The government regulated market competition, interstate commerce, communications, banking, and the
stock market
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E4
Agency to help set up laws and regulations to protect the
natural resources of the United States.
Environmental Protection Agency (EPA)
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E5
How is the Federal Government considered a
“provider”?
The government “provides” for the National Defense,
Education, Public Welfare
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E6
Agency that regulates the television and radio
industries.
Federal Communications Commission (FCC)
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E7
How is the Federal Government considered a
“consumer”?
The government is the 2nd largest consuming unit.
Purchases all kinds of resources.
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E8
Agency designed to regulate the stock and bond markets
in the United States.
Securities Exchange Commission (SEC)
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E9
Agency designed to protect consumers from
false or misleading advertising.
Federal Trade Commission (FTC)
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E10
Agency designed to regulate the nuclear
industry .
Nuclear Regulatory Commission (NRC)
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F1
“The institutional means by which resources are used to satisfy human wants”
is the definition of:
Economic System
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F2
When dealing with creativity, what DISADVANTAGE
does a Command Economy create?
There is no incentive for people to create new ideas,
products, or methods.
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F3
Profits and Private Property are
most closely associated with:
Free Enterprise Economy
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F4
What are the limits of someone’s
Private Property Rights in a Free Enterprise system?
Someone’s rights end when they interfere with the rights of
others.
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F5
For consumers, what DISADVANTAGE does a
Command Economy create?
In order to meet the industrial demands, there will be a large cut back on consumer goods.
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F6
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F7
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F8
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F9
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F10
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Interpreting Maps
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Interpreting Maps