Title: Review basketball chapter 2 Flashcards | Quizlet
Headings: Review basketball chapter 2
Review basketball chapter 2
Key concepts:
Terms in this set (86)

Content: How does specialization make an economy more efficient? It leads to efficient use of capital, land, and labor by allowing people to do that which they can do best and with the least waste of resource. How do self-interest and competition affect the free market? Self-interest motivates people to act in the marketplace, and competition helps moderate the prices and ensure the quality of goods and services offered. The two forces work in tandem to help market operate smoothly, efficiently, and fairly. explain what adam smith meant by the invisible hand of the market place
The "invisible hand" refers to the unseen regulatory action of forces such as self-interest and competition in the marketplace. How can specialization benefit both producers and consumers in a free market economy? Specializatin helps producers work more efficiently, which provides consumers with goods and services at lower costs
How are incentives related to the principle of consumer sovereignty? pRODUCErs' desire for profits leads them to provide those goods and services that consumers want at a price they can afford
What economic characteristics does a centrally planned economy oppose that a market economy encourages
private property, free market pricing, competition, and consumer choice
How do socialism and communism differ? Socialism describes a range of economic systems based on the idea that wealth should be evenly distributed.