Economic Systems Basics
This is the method used by a society or government to organize production and distribute resources, goods, and services
What is an economic system?
In a command economy, this entity has complete ownership and control of all production and distribution
What is the government?
Capitalism emphasizes this type of ownership of property
What is personal (or private) ownership?
In communism, this single entity owns all the factors of production
What is the government?
In a market economy, production and prices fluctuate based on this
What is need (or supply and demand)?
In this economic system, customs and beliefs shape the production and distribution of goods and services
What is a traditional economic system?
This type of ownership does NOT exist in a command economic system
What is private ownership?
This motive drives production and consumption in a capitalist system
What is profit motive?
Communism is the opposite of this economic ideology
What is capitalism?
This type of competition exists between privately owned businesses in a market economy
What is unrestricted competition?
This economic system relies entirely on supply and demand with no government involvement
What is a market economic system?
In a command economy, these do not exist because consumer preferences are not considered
What are incentives?
Capitalism features this type of market competition with minimal barriers
What is free market competition?
In socialism, this group owns the means of production collectively
What is the collective (or society/people)?
In a mixed economy, the government may intervene to pursue these two types of objectives to better the country
What are social or economic objectives?
This economic system features both individual and government ownership of the factors of production
What is a mixed market economic system?
A command economy is characterized by complete government ownership and this level of control over the economy
What is total control?
The level of government intervention in a capitalist economy is described this way
What is minimal?
In a socialist economy, most economic activity is planned through this rather than through market forces
What is a committee?
In communism, this ideology aims to establish a community of economic equality with few consumer choices
What is communist ideology (or communism)?
This is the driving force behind a traditional economic system that keeps tribes and villages rooted in their original way of life
What is tradition (or customs and beliefs)?
These two things are both managed entirely by the government in a command economic system
What are production and distribution?
Capitalism emphasizes individual consumption and production for this purpose
What is personal gain or profit?
In socialism, production is prioritized for this purpose rather than for profit
What is the satisfaction of people's needs?
In socialism, the government regulates the ownership of natural resources based on connections to these
What are societal needs?