FREE ECONOMICS AND STUDY GAMES ABOUT CH 2 ECON

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FREE ECONOMICS AND STUDY GAMES ABOUT CH 2 ECON

SYSTEMS EXAM QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -26 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation

Question 1: socialism

Answer:

economic system in which government own some factors of production and has a role in determining what and how goods are produced.

Question 2: command economy

Answer:

economic system characterized by a central authority that makes most of the major economic decisions

Question 3: capital intensive

Answer:

production process requiring large amounts of capital in relation to labor

Question 4: privatization

Answer:

conversion of state-owned factories and other property to private ownership

Question 5: traditional economy

Answer:

economic system in which the allocation of scarce resources, and other economic activity, is the result of ritual, habit or custom

Question 6: black market

Answer:

market in which goods and services are sold illegally

Question 7: capitalism

Answer:

economic system in which private citizens own and use the factors of production in order to generate profits

Question 8: market

Answer:

meeting place or arrangement through which buyers and sellers interact to determine price and quantity of an economic product; may be local, regional, national, or global

Question 9: Great Depression

Answer:

worst period of economic decline in U.S. History, lasting from approximately 1929-1939

Question 10: Great Leap Forward

Answer:

China's second Five Year Plan, begun in 1958, which forced collectivization of agriculture and rapid industrialization

Question 11: Solidarity

Answer:

independent Polish labor union founded in 1980 by Lech Walesa

Question 12: communism

Answer:

economic and political system in which factors of production are collectively owned and directed by the state; a theoretically classless society in which everyone works for the common good

Question 13: vouchers

Answer:

certificates that could be used to purchase government owned property during privatization

Question 14: nationalization

Answer:

shift of an economy, or part of an economy, from private ownership to government ownership

Question 15: European Union (EU)

Answer:

successor of the European Coal and Steel Community established in 1993 by the Maastricht Treaty

Question 16: Five Year Plan

Answer:

comprehensive, centralized economic plan used by the Soviet Union and China to coordinate development of agriculture and industry

Question 17: market economy

Answer:

economic system in which supply, demand, and the price system help people allocate resources and make the WHAT, HOW, and FOR WHOM to produce decisions; to produce decisions; same as free enterprise economy

Question 18: collectivization

Answer:

forced common ownership of factors of production; used in the former Soviet Union in agriculture and manufacturing

Question 19: population density

Answer:

number of people per square mile of land area

Question 20: GDP per capita

Answer:

gross domestic product on a per person basis; can be expressed in current or constant dollars

Question 21: keiretsu

Answer:

independently own group of Japanese firms joined and governed by an external board of directors in order to regulate competition

Question 22: perestroika

Answer:

fundamental restructuring of the Soviet economy; policy introduced by Gorbachev

Question 23: Gosplan

Answer:

central planning authority in the former Soviet Union that devised and directed Five Year Plans

Question 24: economic systems

Answer:

organized way a society provides for the wants and needs of its people

Question 25: mixed economies

Answer:

economic system that has some combination of traditional, command, and market economies; also see modified free enterprise economy.

Question 26: stagnation

Answer:

lack of movement