ECONOMICS-CHAPTER 2 TEST –STUDY GUIDE
MATCHING
STANDARD OF LIVING
FACTOR PAYMENTS
PRIVATIZE
FREE ENTERPRISE
ECONOMIC SYSTEM
CONTINUUM
SELF-INTEREST
INCENTIVE
SAFETY NET
COLLECTIVE
COMMUNISM
SOCIALISM
LAISSEZ FAIRE
TRANSITION
COLLECTIVE
TRADITIONAL ECONOMY
PRODUCT MARKET
AUTHORITARIAN
MULTIPLE CHOICE
What is the purpose of competition?
What is the function of an economic system?
What are the key economic questions?
What does the process of specialization do for an economy?
What is one of the most important advantages of a free market?
Know the characteristics of a traditional economy, free market, centrally planned economy, mixed economy, market
economy.
Be able to define the following: 1) Product Market, 2) Factor Market
Understand the principle of the invisible hand.
Know and understand the principle of a safety net.
Why do markets exist?
Know the differences between socialism and communism.