Economic Systems
Smith vs. Marx
Govt. Roles/Regulation
Market Types
Business Types
100
Name 2 Economic Systems
Command, Traditional, Market or Mixed
100
Who was in favor of socialism?
Karl Marx
100
Name the 4 roles of government.
Public goods and services, redistribute income, protect private property, resolve market failures
100
Name the four market types
What is Monopoly, perfect competition, monopolistic competition, oligopoly
100
If I like to work alone what business type is best for me?
Sole proprietorship
200
Which economic system discourages government involvement?
Capitalism/Market
200
Who came up with the metaphor of “the invisible hand” and what does it represent?
Adam Smith
200
Which of the roles of government is designed to reduce the difference between the rich and those in need?
Redistribute income
200
Which type of market is hardest to join as a new business owner?
Monopoly
200
If I dislike taxes and fees, but don’t want to work alone, what type of business should I start?
Partnership
300
Who decides what to produce in a socialist system?
The government
300
Who believes in the labor theory of value? What does it mean?
Karl Marx- products are worth how much labor goes into them, so people should be paid based on that
300
Name three types of market failures and explain why the government steps in to resolve them.
Monopolies, unsafe working conditions and products
300
What two markets would be easiest to join as a new business? Why?
Monopolistic competition or perfect competition
300
If I want full creative control and don’t mind high liability (risk) than what type of business should I start?
Sole proprietorship
400
What is one argument for capitalism?
Economic freedom/choices
400
Which of these men would support workers on a strike for better wages? Why?
Karl Marx
400
What is one thing Upton Sinclair witnessed in 19th century meatpacking factories? (We read these in “The Jungle”)
…could vary
400
Give one reason that sellers in perfect competition have no control over market prices.
There are so many sellers that the price is set up by the market price
400
Describe the ownership of all four business types.
Sole proprietorship Partnership Corporation Franchise
500
Explain two criticisms of capitalism?
Market failures- unsafe working conditions, unsafe products, monopolies, etc.
500
Which of these men would support a removal of the minimum wage laws? Why?
Adam Smith
500
What was one unintended effect of the rent control of NYC apartments?
More people wanted apartments, but fewer landlords wanted to rent their property out.
500
Which market type does the government sometimes regulate? Why?
Monopoly
500
Give one benefit and one cost for each of the four business structures.
Could vary...
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