1)Why do governments provide safety nets?
2)Give at least one example of a traditional, a command and a market economic system.
3)How does specialization make us more efficient?
4)Explain what Adam Smith meant by "the invisible hand of the marketplace".
5)Why did Soviet Collectives offer little incentive to farmers?
6)Why do centrally planned economies have difficulty meeting consumer needs?
7)Why are nations with centrally planned economies sometimes slow to succeed when they privatize industry?
8)What benefits might citizens of a centrally economy derive from a move toward a market-based system?
a. Safety nets ensure equal wealth distribution.
b. Traditional: barter, Command: government-controlled, Market: based on demand.
c. Specialization reduces competition.
d. Invisible hand refers to government intervention.1