Characteristics
Capitalism is a ________ economy?
Mixed
What are the 4 factors of production?
Labor, Land, Capital, and Entrepreneruship
What do supporters say about supply-side?
-Bush tax cuts increased annual gross domestic product by 0.7%
-Tax cuts were offset by further tax increases
-The future tax increased we would have to pay off additional debt
What is the definition of a mixed economy?
It is a system that combines characteristics of market, command, and traditional economys
What is labor?
work done by people
What are the characteristics of a mixed economy?
Market Economy, Command Economy, and Traditional Economy
What is the effect of scarcity on the land?
Not enough farmland and not enough products
What do critics say about the demand-side?
-doesnt't go far enough
-government should own everything
-monetary policy is the real driver of the business cycle
-increasing buisness growth, not consumers demand will boost the economy
This term means the government is in full control of the business
Command Economy
What are the two types of theories?
Demand-side theory and Supply-side theory
What is one characteristic of Capitalism?
-Owners control the factors of production
-The owners derive their income from other ownerships
-Free operation of the capital market
How does Entreprenuarship affect scarcity?
If there are not enough entrepreneurs there won't be enough jobs for people
What are 2 advantages of the command economy?
-are able to quickly get products
-meet societal goal
-can execute massive projects
-arent't slowed down by lawsuit or an environmental impacts
________ is an economic system where private entities own the factors of production
Capitalism
What are the three types of economies?
Market Economy, Command Economy, and Mixed Economy
What is one characteristic of Communism?
-Abolition of property in land and application of all rents of land to public purposes
-A heavy progressive or graduated income taxes
-Abolition of all rights inheritance
How does scarcity affect labor?
It causes owners to be more desperate hosting labor to give more benift and incentivies
What do the critics say about the supply side? (multiple answers)
-Each dollar cut returns 50 cents to the revenue
-The revenue lost by tax cuts will only be partially regained
This term means an economy where the owners are able to make profits and regulate prices without government control
Market Economy
What are the three economies that make up a mixed economy?
Market Economy, Command Economy, and Traditional Economy
What economic ideology is this? Land, labor, and hunt for creating a new business is owned by everyone. People get incentives based on their contribution to the economy.
Socialism
what factor of production is this? If you lack natural resources you will be unable to make man-made objects like buildings or roads
Capital
What are at least 1 disadvantage and 1 advantage for a mixed economy?
Advantages
-It distributes goods and servces to were their needed the most
-encourages inovation
-meets customer needs
Disadvantages
-too much freedom
-less competitive
-tax breaks
What does the term where everyone including the government is equal? People get more incentives based on their cooperation in helping their economy.
Socialism
What is one characteristic of a Traditional Economy?
-relies on agriculture, hunting, and fishing
-Laws and treaties also protect the fishing industry
-Hunting is no longer needed as a primary source of food for America, but tradition still supports it
-Laws and permits protect the right to hunt.