Economics: Chapter 2 Review Questions					Name __________________ Hour ____

2.1
1.  List the major characteristics of a pure market economies.

2.  Define a traditional economy and give an example.  List some advantages and disadvantages.

3.  Define a command economy and give an example.  List some advantages and disadvantages.

4.  Define a market economy and give an example.  List some advantages and disadvantages.

5.  Define a mixed economy and give an example.  List some advantages and disadvantages.

6.  In this economic system economic decisions are made by the government.

7.	  An economic system in which there is little private property & the government owns virtually all the factors production.

8.	  An economic system that combines features of a market economy and a command economy.

9.	  This is the freely chosen buying of goods and services between buyers and sellers.

10.	  An economic system in which economic decisions are based on customs and beliefs.

11.	  This illustrates how dollars and factors of production move from individuals to businesses and back again.

2.2
12.  	In a capitalist system, most property is owned by who?

13.  	What type of economy would it be the easiest to start your own business in?

14.  	What did Adam Smith believe the government’s role in the marketplace should be?

15.  	List the economic goals of the American free-enterprise system. 

16.  	What are the three basic questions addressed by all economies?

17.  What did Karl Marx believe would happen to capitalism?

18.  	What type of economy is a capitalist system?

19.  	The rivalry among producers to win business.

20.	  The economic system in which the government minimizes its interference in the economy.

21.	  The amount left over after all the costs of production have been paid.

22.	  Goods owned by individuals rather than by the government.

23.	  The desire to make money that motivates people to produce and sell goods and services.

24.	  An economic system in which individuals own the factors of production and make their own economic decisions.

2.3
25.  	What is another word for "equity"?

26.  	The attempt to balance an economic policy so that it is just is known as _________________________________.

27.	  An expansion of the economy to produce more goods, jobs and wealth is known as this.

28.	  The concept of using limited resources wisely.

2.4
29.  	List the major characteristics of Pure Socialism

30.  	This is the material well-being of an individual, group or nation.

31.	  An economic system in which economic decisions are made by individuals rather than by the government.

32.	  This is the term Karl Marx used to refer to workers.

33.	  An economic system in which in theory there is no need for a government.

34.	  A system that works within a constitutional framework to elect socialists to office.