Unit 2: Economic Systems

Front

Why are public goods important for society?

Back

They ensure equal access to essential resources and services

Front

How might cultural factors influence economic behavior in a society?

Back

Cultural values may shape individuals' attitudes towards work, consumption, and saving.

Front

How does an increase in consumer spending affect the two-factor circular flow model?

Back

It stimulates economic activity by increasing business revenue, prompting firms to hire more factors of production.

Front

Portion of the Circular Flow model indicated: Households, Firms, Factors of Production Market, Goods and Services Market, Flow of Money

Back

Households

Front

Select the portion of the Circular Flow model indicated: Firms, Households, Factors of Production Market, Goods and Services Market, Flow of Money

Back

Firms

Front

Select the portion of the Circular Flow model indicated: Goods and Services Market, Firms, Households, Factors of Production Market, Flow of Money

Back

Factors of Production Market

Front

What is the main characteristic of a command economy?

Back

The government has complete control over the allocation of resources.

Front

Which economic system is characterized by private ownership of business and competition in the marketplace? Options: Traditional Economy, Command Economy, Market Economy, Mixed Economy

Back

Market Economy

Front

Who typically provides public goods and services?

Back

Governments

Front

Example of a public service provided by the government: Private health insurance, Public park maintenance, Subscription-based television service, Online retail platform

Back

Public park maintenance