Traditional Economy
In this type of economy people mostly grow their own
Food
In a Command Economy, who makes all of the economic decisions?
The government or governing body.
A Mixed Economy is comprised of these two economic systems:
Market and Command Economy.
Another name for Market Economy.
Capitalism or free.
In a traditional system this is how economic decisions are made based on
Customs, traditions and beliefs of the past.
A Command Economy is found in primarily what type of government?
Autocracy (Communism, Dictatorship, Monarchy, etc)
In a Mixed Economy the government allows people to own their business but intervenes in what possible ways?
Healthcare, welfare, business regulation to protect workers and bosses, food and drug regulation, vehicle regulation, oil regulation, etc.
When a government stays out of the way of business it is referred to by which French phrase?
Laissez-Faire
The Maasai tribe of East Africa. Their tribal leaders designed an economic model where decisions on labor, production, and the distribution of products and goods were based on tradition and community custom.
Is this an example of a Traditional Economy? Why or why not?
Yes; the decisions are made based on traditions and community customs.
Name two countries who have or have had command economies.
China, North Korea, Mali, Bolivia, Russia, Venezuela, etc.
In a mixed economy the government might spend money to try to stop a?
Depression
How are decisions made in a Market Economy?
Consumers and companies make all economic decisions.
The way in which people in a Traditional Economy trade and exchange goods and services.
Bartering
Characterized by private ownership, freedom of choice, self-interest, optimized buying and selling platforms, competition, and limited government intervention.
Is this an example of a Command Economy? Why or why not?
No; citizens have private ownership of goods and are allowed to freely participate in economic activity. There is limited government intervention.
What are the three questions individuals and corporations answer when making economic decisions?
What to produce? How to produce? For whom to produce?
What is a business person who takes risk to start a business called?
Entrepreneur
Traditional Economies can be found in rural areas of the continents of Asia South America and what other continent?
Africa
Name some of the possible disadvantages of a Command Economy.
Innovation is discouraged, needs/desires of the people are rarely met, overproduction of some goods and underproduction of others, lack of trade with other countries, etc.
Mixed economies were written about by which economist?
A Karl Marx
B John Maynard Keynes
C Adam Smith
B
Free Market systems were championed by which writer?
A Karl Marx
B John Maynard Keynes
C Adam Smith
C