Economic Systems
What are the three basic types of economic systems?
Traditional, Command, and Market economies
A major disadvantage of a traditional economy is that it discourages these
What are new ideas and new ways of doing things?
This is described as a theoretical ideal where everyone contributes based on ability and consumes based on need
What is communism?
Name one of the groups mentioned as an example of a traditional economy
What are the central African Mbuti, the Australian Aborigines, or the Inuit of Northern Canada?
This term describes the most powerful economic system for generating wealth
What is capitalism?
In this system, everyone knows what role to play, and resource use is dictated by custom, habit, or ritual
What is a traditional economy?
One key advantage of a command economy is its ability to do this very quickly
What is change the direction of the economy?
This economic system is a modern, more liberal version of a command economy
What is socialism?
Many nations in this region of Europe, like Poland and the Czech Republic, are transitioning away from Soviet socialism
What is Eastern Europe?
This is the process of converting state-owned resources to private ownership, which must happen when transitioning to capitalism
What is privatization?
This economic system is based on supply and demand, with decisions made by people and resources owned privately
What is a market economy?
Benefits of a market economy include less government intervention and a large what for consumers?
What is a variety of goods and services?
In this type of mixed economy, as seen in modern China, the government controls some, but not all, of the resources, while allowing some private enterprise
What is mixed socialism?
This country's ongoing transition to capitalism has brought it tremendous economic growth
What is China?
This term, abbreviated as GDP per capita, measures the average economic output per person
What is Gross Domestic Product per capita?
In this type of economy, a central authority makes the major decisions about what, how, and for whom to produce goods
What is a command economy?
Disadvantages of a mixed economy can include higher tax rates and the limited availability or decreasing quality of these
What are services (like social benefits)?
In this type of mixed economy, there is a free market, but the government may control certain sectors like health care or energy
What is a mixed market economy?
The transition from a socialist, government-run economy to a free market in the early 1990s caused great deprivation for many people in this country
What is Russia (formerly the Soviet Union)?
In a market economy, these three factors help people make decisions and allocate resources
What are supply, demand, and the price system?
This type of economy exists because people adapt successful practices from other economies and combines elements of all three basic systems
What is a mixed economy?
Name two disadvantages of a command economy
What are any two of the following: leaders provide for themselves, loss of individual freedom, low-quality goods, a large and slow bureaucracy, lack of individual initiative, and inflexibility?
According to the sources, the United States is considered an example of this specific type of economy
What is a mixed market economy?
Name two of the nations listed to show that a free market capitalist system can be organized in different ways
What are Japan, South Korea, Singapore, Taiwan, or Sweden?
The three fundamental questions every economy must answer are WHAT to produce, HOW to produce it, and this
What is FOR WHOM to produce?