Chapter 2 Review_______________________________
1.
Adam Smith’s “invisible hand” refers to the role of
2.
Another term for a capitalist system is a
3.
A major characteristic of a pure market economy is
4.
It is easier to start your own business in which economy
5.
In a capitalist system, most property is
6.
Name a country that has a command economy?
7.
A laissez-faire system is one in which
8.
What goods and services should be produced, how they should be produced, and who
should share in what is produced are three basic questions addressed by
9.
All economic systems have what
10.
Almost all economic systems today are which type of economic system
11.
Who owns the factors of production and makes economic decisions in a market
economy?
12.
Give an example of a group people that have a traditional economy?
13.
One advantage of a controlled economy is
14.
Since the 1880s, the role of the government in the United States has
15.
Describe a free enterprise system?
16.
In a free enterprise system, who makes the decisions about what should be produced?
17.
What motivates people to establish new businesses or expand existing ones?
18.
Competition forces businesses to
19.
The goal of economic freedom is to
20.
A law dealing with unemployment compensation helps provide
21.
Economic equity deals with the issue of
22.
The goal of economic stability is to reduce extreme ups and downs in the