Traditional
People make economic decisions based on ______________ and ______________.
Customs and values
Benefits of Market economy are:
people own their own businesses, they encourage technological growth, and they focus on making products that are cheaper for consumers at prices_________________________________
consumers are willing to pay.
The __________________makes all the economic decisions (centrally planned economy)
central government
has __________ taxes to pay for the services it provides.
higher
A budget.
This type of economy is .....
No longer common
Downsides:
Companies grow huge- little competition so they dictate price, some very rich and some very poor, no/poor national defense or police protection because they do not do well under ________________________.
Private ownership.
____________ & ____________ do NOT make basic economic decisions
individuals and consumers.
name 2 countries that have mixed economies that are closest to pure command economies.
North Korea and Cuba
What kind of accounts do banks have that we can open to help us manage our money?
Basic needs are satisfied through traditional methods such as _______________ & _______________.
hunting and farming.
individual consumers & producers make _______________________________
economic decisions. (capitalism)
there is a lack of ____________________ & ______________________ to motivate workers and managers.
competition & incentives
name 2 countries that have mixed economies that are closest to pure market economies.
United States of America and Australia
Banks charge or give you ____________ on loans they give you or when you lend them your money.
interest
Standard of living is usually _________, but there is _______ waste.
low/less
Its based on the principles of .... (3 things)
freedom, competition, and profit.
There is little ______________ because the government makes sure that everyone has a job.
Unemployment
provides many welfare benefits & ensures the _____ & _____ are cared for.
poor and disabled.
credit cards are a good idea because _________.
Credit cards are a bad idea because_________.
good - they help us buy things we can't afford in the moment that we might need.
Bad - they charge a large amount of interest on the amount borrorwed. (so don't use them unless you have to!!)
People usually do not want to change their way of life, so the economy may be __________.
Static (what does that mean?)
Can earn as much ________ as they can.
profit
what is shared more evenly?
income
aims to level the "___________________"
"Extremes of wealth"
3 ways we can make the most of our money
1. use coupons
2. shop around for the best prices on goods/services
3. only buy what we need, not want
answers may vary ...