Management One

Chapter 2 Resource development is the study of how to increase resources and to create the conditions that will make better use of those resources. Tru e Fal se Inflation refers to the persistent rise in the purchasing power of money. Tru e Fal se Economics is the study of how a society _________________. employs statistical techniques to make predictions about the evolution of society over the long run employs resources to produce goods and services and distribute them among competing groups and individuals governs itself for the good of its citizens invests wisely in the stock market Economist Thomas Malthus believed that ______________ would limit economic progress. the tendency of governments to levy high tax rates overpopulation depletion of gold reserves the inability of workers in developed nations to compete against cheap foreign labor Under capitalism: The primary function of the government is to distribute wealth more evenly. Utilities, health care, education, and other important services are operated by the government. Most of the means of production and distribution are privately owned and operated for profit. Markets operate to carry out the decisions made by central planners. A free market is one in which decisions about what to produce and in what quantities are made by: the Fed the community the market the Congress A major benefit of socialism is the: Emphasis on private enterprise instead of public ownership. Emphasis on social equality. Ability to stimulate rapid economic growth. Ability to keep taxes low.

Communism is an economic system in which: The government makes almost all of the major economic decisions. Almost all of the productive resources are owned by private businesses. Individual consumers make all economic decisions. The government and private citizens own equal shares of the economic resources. ____________ refers to the efforts of the federal government to keep the economy stable by increasing or decreasing taxes and/or...