rq_02s - Review Questions - Chapter 2 _ _ _ _ _ _ _ _ _ _ _...

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Review Questions -- Chapter 2 _____ 01. The way a society answers the major economic questions, (What, How, etc.), is known as: (A) demand and supply (B) scarcity (C) PPC (D) economic system (E) Capitalism _____ 02. No system today is a perfect example of a free-market system. Rather, all systems are a mixture of all three types. (A) true (B) false _____ 03. Since all societies face the same problem, namely scarcity; there must be one best economic system for all societies. (A) true (B) false _____ 04. Which of the following is not cited as an advantage of the traditional economic system? (A) stable (B) automatic (C) progressive (D) preserves tradition _____ 05. The command economic system is generally more progressive and more efficient then the traditional economic system. (A) true (B) false _____ 06. Which of the following is the best example of a command economic system? (A) U.S.A. (B) England (C) Canada (D) Mexico (E) Cuba _____ 07. Laissez-faire is a major principle of the Capitalist system. It refers to the necessary role of the government as the regulator of the free market system. (A) true (B) false _____ 08. The economic system where resources are privately owned and markets coordinate economic decisions is: (A) command (B) traditional (C) mixed (D) capitalism _____ 09. Intellectual property refers to: (A) gold and silver (B) real estate (C) colleges and universities (D) libraries (E) ideas/performances contained in books, movies, videos, computer programs, etc. _____ 10. Economists generally assume that profit maximization is the primary goal of firms in a capitalist system. (A) true (B) false _____ 11. According to Global Perspective 2.1 in the text, the U.S.A. has the most free economy. (A)
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This note was uploaded on 09/18/2008 for the course ECON 201 taught by Professor Mclean during the Fall '08 term at Harrisburg Area Community College.

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rq_02s - Review Questions - Chapter 2 _ _ _ _ _ _ _ _ _ _ _...

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