Market Economy Review

Front

In a market economy, the basic economic decisions are driven by?

Back

individuals

Front

Which of the following characteristics does NOT describe the features of a command economy? Scarcity and rationing of goods often occur, the market is inefficient, there are fewer choices than in a market economy.

Back

Individuals can decide what to produce and how much to produce

Front

Which group of people ultimately determines the products that a command economy produces?

Back

Government Officials

Front

Capitalism is associated with all of the following characteristics EXCEPT __________

Back

government intervention in the economy's decision making process

Front

Cuba is clearly pursuing a gradual shift from a command to a market economy. Which of the following is NOT a possible benefit that could result from these economic reforms? Workers who work harder could get paid more than usual, There could be more production than before the reform, Cuba could have higher GDP growth, Workers could have a guaranteed income

Back

Workers could have a guaranteed income

Front

How can you determine that an economic transaction is voluntary?

Back

Because I act of my own free will

Front

People tend to work harder when an employer promises to increase their wages. The hard work is an effect of the incentive provided by the employer. True or False?

Back

True

Front

Which of the following characteristics does NOT belong to a market economy? private ownership, voluntary market exchange, government price setting, incentives

Back

government price setting

Front

In which of the following situations is private ownership not guaranteed?
Jane's business was closed because the landlord increased the rent and she could no longer afford to stay open
Jane's business was closed because of the recent strong winds
Jane's business was closed because of low sales due to Covid-19
Jane's business was closed because the government wanted to reduce competition with state-owned businesses

Back

Jane's business was closed because the government wanted to reduce competition with state-owned businesses

Front

Matching: Guarantees Individuals the right to own property and use it in any legal way they would like

Back

Private ownership