Economic Systems
Economy where decisions are made based off habit, custom, superstition, or religious customs
What is traditional economy?
The quality of being fair and just
What is equity?
Inuit people in the Artic
What is traditional economy?
Involves choosing which combination of resources should be used in production
What is "How should it be produced"?
When people have freedom to make economic choices on their own
What is economic freedom?
Economy where central planners make important decisions
What is a command economy?
Each member of society has the same opportunities in life
What is equality of opportunity?
The US
What is market economy?
Asks if people who work harder than others should receive more goods
What is "For whom should it be produced"?
When citizens have confidence in their ability to support themselves or household
What is economic security?
Economy where a market economy is combined with significant government involvement and elements of tradition
What is a mixed economy?
The way that scarce resources are distributed
What is allocated?
North Korea
What is command economy?
Economic question that involves tradeoffs
What is "What should be produced"?
Increase in amount of goods and services a economy can produce over time
What is economic growth?
Economy where private businesses compete for profit
What is a free enterprise system?
The ability to continue actions indefinitely
What is sustainability?
Germany
What is a mixed economy?
Each member of society shares equality in what the economy produces
What is equality of outcome?
If every opportunity is taken to make some people better off without making others worse off
What is efficiency?
Economy where forces of supply and demand determine production
What is a market economy?
A measure of the wealth of goods and services available to help people live comfortably
What is standard of living?
What is a free enterprise system?
This happens because of unlimited wants and limited resources
What is scarcity?
Second source of economic security, any form of government assistance
What is social safety net?