Chapter 16

Chapter 16

An economy may be defined as what?
Social organization where social goods are distributed
What are three determinations that an economy must perform?
not the storage of the goods and those who get to enjoy them
Research has found that after society has reached an annual income threshold of about ________________capita, additional income does not seem to make a society happier. What amount?
15 thousand dollars
Desires for things that can be obtained by labor or through exchange are called what?
Economic wants
Economic goods are the objects of our economic wants and are the things that what?
money can buy
Wealth is what we call what?
material economic goods
All economic goods take the form of either wealth or what?
services
Adam Smith’s concept of the invisible hand refers to what?
the rise and fall of prices that produce individual hands
Adam Smith argued that people’s needs were met by the market because people were what?
Selfish
Allowing the market to operate with a minimum of government regulation is called what?
Lazy affair
Charles Fourier and Robert Owen were what?
utopian sociaties
Karl Marx and Friedrich Engels argued for a new form of economic organization called what?
Communism
Louis Blanc was one of the originators of what?
Socializam
Communism refers to a state in which what is true?
The communist party
Soviet-style socialism was abandoned because why?
Significantly lagging behind capitalist economony
A planned economy is characterized by what?
The government
Which institution controls a planned economic system?
Markets
What institution controls an unplanned economic system?
Which of the following is an example of a country with a planned economy?
Possibility of making process
In a market economy, the chief incentive is what?
.
An economy in which the government plays no part at all is called what?
Pier free
Equilibrium price is the price which what?
Supply and demand meet at the point of equilibrium
Major technological breakthroughs in the development of computers increased supply and quality. In response, prices of computers did what?
Fall
All modern economies, whatever their history, have evolved into what?
Primatic market economony
The “rule of law” in the U.S. limits the government’s ability to change what?
Property rights