42. The market system gives more goods to those with more money votes. 43. A “mixed economy” involves both private and public decision making. 44. A “mixed economy” may involve both perfect and imperfect competition. 45. An economic good is valued in part by its scarcity. 46. The prices of productive factors influence how goods are produced. 47. By the “invisible hand ” Adam Smith meant that although government dominates our economy most of us are not aware of this fact. 48. Without government the “for whom” problem could not be solved. 49. Where there are differences in individual abilities specialization may be desirable. 50. Adding to the stock of capital goods may require a temporary reduction of present consumption. 51. The American economy of the 1990’s was essentially a laissez-faire economy with a shrinking government sector. 52. In a price system the signals sent to business people by losses are just as important as the signals sent by large profits.
