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6. The private ownership of property resources and use of the market system to direct and coordinate economic activity is characteristic of:
a) the command economy;
b) the traditional economy;
c) pure capitalism;
d) market socialism.
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- competition , -
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13. What are the essential features of the Marxian ideology on which the command economy is based?
14. In the circular-flow-of-income model:
a) what two markets are involved?
b) what roles do households play in each of these markets?
c) what roles do business play in each of these markets?
15. What is meant when it is said that competition is the mechanism which controls the market system? How does competition do this?
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2. If the circular flow model businesses:
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d) supply products and demand resources.
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a) the widespread diffusion of economic power;
b) a large number of buyers in product markets;
c) just several sellers of all products;
d) the relatively easy entry in to and exit of producers from industries.
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- deposits
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- perfect competition
- collusive oligopoly
- Herfindale index - infrastructure - commercial bank - competitive firm - credit - loansharking - liquidity - monopolistic competition - monopoly - nonprice competition
() - discount rate
- legal reserves - oligopoly - oligopsony - market power - market structure
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13. What are the chief functions which the central banks perform? Which of the chief functions is the most important?
14. What are the basic characteristics of pure competition, pure monopoly, monopolistic competition and oligopoly?
15. What are the two basic functions of commercial banks and thrift institutions?
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