Market Economy Characteristics #1
What is the term for buyers and sellers willingly engaging in market transactions?
Voluntary exchange
Private property
The government issues a copyright to an inventor. Which role is the government playing in this scenario?
Protecting private property rights
In a command economy, who/what answers the questions of what, how, and for whom to produce?
Government
Chick-fil-A & Popeye's both sell chicken sandwiches. These are businesses that are engaged in what economic practice?
Competition
The term that means that individuals (not the government) make decisions about how resources will be used and allocated is
Decentralized planning
DeKalb County opens a new public library and a new park. Which role is the government playing in this scenario?
Providing public goods & services
What is the name of the economic system that blends elements of the command and market economy?
Mixed
John becomes an entrepreneur because he wants to make money. This desire to make money is called...
Profit motive
Freedom of enterprise OR decentralized planning
The government breaks up a company that has become a monopoly. Which role is the government playing in this scenario?
Correcting market failure
What is the term that means that government OWNS all of the productive resources?
Public ownership
Decentralized planning
Nike has a trademark on the "Swoosh" logo. This is an example of which of the characteristics of market economies?
Private property
The government takes tax dollars from wealthy individuals and uses them to provide SNAP/EBT benefits to lower income families. Which role is the government playing in this scenario?
Redistributing income
Which methods of resource allocation are most common in a command economy?
Government control & equal sharing
What is the primary method of resource allocation in market economies?
Price / Income / Wealth / Money
People no longer want hot dogs, so the local restaurant stops producing them. This is an example of which characteristic of market economies?
Consumer sovereignty
A musician files a lawsuit because someone samples their music and doesn't pay them for it. Which role is the government playing in this scenario?
Protecting private property rights
Which of the broad social goals are best achieved in a command economy?
Economic EQUITY & SECURITY