Economy Types
How Goods are Produced
What Goods are Produced
For Whom Goods are Produced
Potpourri
100
The type of economy that exists in Cuba, N. Korea, and in the former Soviet Union.
What is a command economy.
100
This resource is bought by firms in exchange for wages.
What is human labor.
100
In a command economy, he or she decides what is produced.
Who is the ruler/leader?
100
This type of economy takes care of all members and is based on mutual fulfillment of needs.
What is a traditional economy.
100
I eat a slice of pizza. It is good. I eat a second slice, it is still satisfying, but slightly less so. I eat a third, fourth, fifth, sixth, seventh, and finally an eight slice. The eight slice makes me yak.
What is the law of diminishing marginal utility.
200
Hong Kong's economy is probably the closest version of this economy.
What is a market economy?
200
This resource is bought by firms in exchange for rent.
What is land or natural resources.
200
In a traditional economy what to produce is decided by this.
What is need or basic wants.
200
This type of economy produces for those with the means to purchase goods and services through the product market.
What is a market economy.
200
When an economy operates at full efficiency, it is operating along or on this.
What is the production possibility frontier or curve.
300
When history or the past dictates current economic activity.
What is a traditional economy?
300
This resource is a derivative of labor and land, and is considered a factor of production.
What is capital.
300
An economy that relies on consumer desires to determine what is produced is called this.
What is a market economy.
300
This type of economy is produces for the leaders, with leftovers distributed to the citizens.
What is a command economy.
300
The basic problem of economics is this.
What is scarcity.
400
The United States, Great Britain, and China all have different versions of this type of economic system.
What is a mixed economy?
400
Producers must decide the mixture of these when developing a product.
What is land, labor, and capital or the factors of production.
400
A moo mixer is an example of this.
What is a want, not a need and would most likely only exist in a market economy.
400
This entity purchases goods and services through the product market in the circular flow model.
What is the household.
400
The lost value of the second best option is also known as this economic idea.
What is opportunity cost.
500
This model explains how goods, services, resources, and money moves around an economy.
What is the circular flow model?
500
This is the fourth factor of production, that is essential in determining how the firm will produce goods or services.
What is entrepreneurship.
500
In this market do firms sell goods and services in exchange for revenue from households.
What is the product market?
500
I buy a moo mixer and pay 8.25% sales tax. This economic transaction can only exist in this type of economy.
What is a mixed economy.
500
The best chocolate milk maker in the world, the Moo Mixer, is an example of an economic this.
What is a want.
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