3 Economic Questions
List two of the three basic economic questions.
What to produce?
How to produce?
For whom to produce? or Who's going to consume?
This economic goal deals with improving the standard of living through innovation & economic growth.
What is Economic Growth?
This economic system is where the government makes all the economic decisions.
What is Command Economy?
The government in a Mixed Economy does these two actions:
Regulate the markets AND provides some goods/services.
The government philosophy that features private ownership of businesses and marketplace competition with some government regulation.
What is Capitalism?
Which of the 3 basic economic questions fits this scenario:
Sarah knits brightly colored hats and scarves to sell in the wintertime in her online store.
What to produce?
This economic goal deals with evenly distributing the wealth of a nation to make sure there is fairness in allocating resources.
What is Economic Equity?
This economic system is where all economic decisions are made by individuals & businesses with no government regulation.
What is Free Market Economy?
This economic system opposes private property, competition, and consumer choice.
What is Command Economy?
This government philosophy is where the government runs key industries, while other industries allow for competition by private businesses:
Socialism
Which of the 3 basic economic questions fits this scenario:
Josh knows that many employees at the local factory enjoy eating out for lunch, so he always includes the factory on his food truck route.
Who's going to consume?
For whom to produce?
This economic goal deals with reducing waste while making sure most consumers are able to get what they want.
What is Economic Efficiency?
This economic system is where tradition, habit, or ritual answers the 3 basic economic questions.
What is Traditional Economy?
The United States leans which way on the Mixed Economy range?
What is towards the Free Market side?
The government philosophy where the “people” control everything and make all economic decisions collectively
Communism
Which of the 3 basic economic questions fits this scenario:
During the tourist season, Mary hires local college students to help run her small business.
How to produce?
This economic goal deals with supporting & providing necessities for the poor & disadvantaged.
What is Economic Security?
This economic system is where all economic decisions are made by the government & individuals and businesses.
What is Mixed Economy?
What characteristic about a traditional economy allows it to provide economic security for people?
People working to support the community, not just themselves.
This is the term for an economy transitioning from a command economy to a free market system.
What is Privatization?
How are all 3 basic economic questions answered in this scenario:
The local school board has decided to use the leftover money in their budget to purchase new laptops for their high school teachers.
What to produce: new laptops.
How to produce: use the leftover budget.
For whom: the high school teachers.
This economic system deals with having all necessities consistently available for the public without uncertainty.
What is Economic Stability?
These two economic systems involve Factor Markets & Product Markets.
What are Free Market & Mixed Economies?
This economic system involves the Invisible Hand regulating it through the use of self interest, incentive, & competition.
What is Free Market Economy?
This government philosophy is closely related to the free market economic system.
What is Capitalism?