Exam (elaborations)
Govt 350 Exam 2 Ferdon.
- Course
- Institution
Govt 350 Exam 2 Ferdon.
[Show more]
Seller
Follow
modockochieng06
Content preview
Govt 350 Exam 2 FerdonWhat represents the dynamics of the free market system? - ANS-Competition as
opposed to coercive interference
Be able to discuss 2 consequences of competition - ANS-·1)People are at liberty to
gravitate towards what they do best if the goal of any free market procedure is
productivity and productive employment.
2) Results in more efficient use of capital and labor. (Stewardship)
3)Raises or elevates the quality of products.
4)Overcomes scarcity by increasing the availability of goods and services.
5)Results in production sufficient to meet consumer demands.
6)Lowers the price of products; scarce monetary resources are distributed to other
market sectors.
7) Enhances cooperation through constant interaction and exchange. Consumers
compete against consumers, producers against producers. (Requires relationship!)
8) Results in overall economic improvement nationally.
What is the relationship between competition and scarcity? - ANS-Competition is a
consequence of economic scarcity: Competition exists when people prize or value
something which is not readily available. Increases occur on the demand side when the
supply is low, or a relative scarcity exists. More producers are now drawn into the
market to meet the demand. Scarcity is overcome when supply meets demand.
What is "proit" and it's relationship to the market system? - ANS-Profit is the incentive
for investment, and rewards result in greater incentives to produce. Objective of the
market system is increased production, and competition promotes productivity;
nevertheless, people are free to lose.
o Profit actually guides the factors of production in accordance with demand.
o Profits will solve a shortage very quickly, provoke greater levels of economic
efficiency, and therefore, a more efficient use of property.
o Profits are not generally a result of raising prices, but greater levels of production
efficiency which result from cuts in the cost of production.
o
o Profits are calculated by relating costs to prices.
#6 Capitalism fosters greed and government must temper it - ANS--"Greed" is over
applied here
-Acting in your own self interest is not necessarily a bad thing
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller modockochieng06. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
81989 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now