Vocab
Economic system that has some combination of traditional, command, and market economies
Mixed economy
This type of good/service is non-exclusive and subject to shared consumption. Name the type of good/service and list one example.
Public goods/services. Some examples include national defense, street lights, libraries, public parks
This type of economic system is able to adjust to change gradually because of market forces (supply, demand, etc)
This type of economic system lacks effective incentives to get people to work productively
Disadvantage of Command Economy
Rewards and punishments that motivate behavior
Incentive
This type of good/service is exclusive and NOT subject to shared consumption. Name the type of good/service and list one example.
Private good/service. Some examples: getting your car repaired, groceries, haircut, fountain drink
DOUBLE JEOPARDY (This question is worth 400 points!)
This type of economic system produces a large number of goods and services for consumers
Advantage of a Market Economy
In this type of economic system, government leaders often provide for themselves at the expense of the public
Disadvantage of Command Economy
People cannot access a good/service unless they pay a fee or qualify in some way
Exclusive/non-exclusive
This type of good/service is exclusive and is subject to shared consumption. Name the type of good/service and list one example.
Toll good. Some examples include: amusement park (King's Island), toll road/bridge, electric power, college education, movie theater
This type of economic system is capable of dramatic change in a short period of time
Advantage of a Command Economy
In this type of economic system, the lack of progress often leads to economic stagnation and a lower standard of living
Disadvantage of Traditional Economy
Organized way a society provides for the wants and needs of its people
Economic system
This type of good is not exclusive and is NOT subject to shared consumption. Name the type of good/service and list one example.
Common-pool resource. Some examples include: fish taken from the ocean, pinecones taken from the forest, water taken from an irrigation ditch
In this type of system, one advantage is that everyone has a role to play (usually predetermined based on ritual, habit, custom, etc.)
Advantage of Traditional Economy
This type of economic system rewards only productive resources and does not provide for people too young, too old, or too sick to work.
Disadvantage of Market Economy
Economic system in which the government owns some factors of production (i.e. key industries) and has a role in determining what and how goods are produced
Socialism
Define what a free-rider is and list one example of a good/service that could allow for free-riders
A free-rider is someone who receives the benefit of a good/service but does not pay for it. If you do not pay taxes, you could be considered a free-rider because you do not pay for public goods/services (national defense, public parks, libraries, etc.)
This type of economic system emphasizes equality of opportunity
Advantage of Command Economy
This type of economic system does not produce enough public goods such as healthcare, national defense, education, etc.
Disadvantage of Market Economy