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Principle of Macroeconomics Ch.2 Questions, Answers, Rationales | Latest Updates
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Principle of Macroeconomics Ch.2 Questions, Answers, Rationales | Latest Updates
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Principle of Macroeconomics Ch.2Study online at https://quizlet.com/_f8dmvb
1. A(n) ______ system is a particular set of institutional Economic
arrangements and a coordinating mechanism that re-
sponds to the economizing problem.
2. Which is considered to be "pure capitalism," in which Laissez-faire capi-
the role of government is essentially limited to that talism
of protecting private property and establishing a legal
environment for enforcing contracts and market activ-
ity?
3. Who owns most property resources in a command Government
system?
4. What is the command system also known as? Capitalism or com-
munism
5. Private individuals and firms, not the government, Market System
own most of the property resources such as land and
capital in a free ______
6. Which of the following is the reason why every society Every society
needs to develop an economic system? faces the econo-
mizing problem.
7. Is characterized by the private ownership of resources Market System
and the use of markets to coordinate and direct eco-
nomic activity?
8. A market system in which the role of government is Describes the con-
limited to protecting private property. cept of lais-
A market system in which only mutually beneficial sez-faire
economic transactions are completed.
9. Government ownership of most or all resources Define a com-
A government-appointed central planning board mand system
10. ________ is an institution or mechanism that brings Market
buyers and sellers into contact.
11. Command
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, Principle of Macroeconomics Ch.2
Study online at https://quizlet.com/_f8dmvb
Communism exhibits all the characteristics of a
______ system.
12. ______ ownership of capital gives capitalism its Private
name.
13. In which of the following do private individuals and Market System
firms own most of the property resources such as
land and capital?
14. Geologists working for ExxonMobil have determined Mutually agree-
that there exists a high probability that your neighbor- able economic
hood is located above a potentially large oil reserve. transactions
As a result, ExxonMobil offers to purchase every own-
ers' property at a substantial price to which everyone
agrees. Which of the following does this illustrate?
15. limiting the government's interference in the econo- "laissez-faire"
my.
16. The title to an automobile or the deed to a cattle ranch facilitating ex-
assures a buyer that the seller is the legitimate owner change
of that property. This is an example of property rights
_________.
17. Freedom of _______ ensures that entrepreneurs and Enterprise
private businesses are free to obtain and use econom-
ic resources to produce their choice of goods and
services.
18. Private individuals and businesses are able to utilize The right of private
property as they wish as a result of: property.
The ability to
negotiate legally
binding contracts.
19. When every economic unit in a society attempts to Self-interest
achieve its own particular goal, usually requiring de-
livering something of value to others, it is referred to
as ______.
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