Economic Systems
The 3 economic questions are answered by custom or habit.
What is a traditional economy?
A synonym for free markets and free enterprise
What is capitalism?
Where buyers and sellers come together to make exchanges
What is a market?
The goal of maximizing resources
What is efficiency?
Someone unwilling to pay for a good or service but who would benefit if it were provided as a public good.
What is a free rider?
The government answers the 3 economic questions.
What is a command economy?
Besides what goods and services should be produced, and how they should be produced, the third economic question
What is "Who consumes the goods and services taht are produced?"
The struggle among producers for the dollars of consumers
What is competition?
The goal or value of making one's own choices
What is freedom?
An economic side effect of a good or service that affects someone other than the producer or consumer.
What is an externality?
The 3 economic questions are answered by the interactions of consumers and producers.
What is a market economy?
The two markets in the circular flow model
What are the product market and the resource (or factor) market?
The author who coined the phrase "the invisible hand"
Who was Adam Smith?
The goal of improving the standard of living or increasing prosperity for all.
What is economic growth?
The basic facilities that are needed for a society and economy to function efficiently and grow. Includes bridges, ports, and roads.
What is infrastructure?
Something that motivates or de-motivates people to behave in a certain way.
What is an incentive?
The doctrine that government should generally not intervene in the marketplace.
What is laissez faire?
The tendency of individuals and businesses to focus their efforts on a limited number of activities.
What is specialization?
The goal of avoiding uncertainty
What is security?
For a public good it would be inefficient or impractical to do these two things
What is: (a) make individual consumers pay and (b) exclude non-payers?
Economic system with some market-based elements and some government involvement
What is a mixed economy?
The two Constitutional amendments that protect private property rights
What are the Fifth and the Fourteenth Amendments?
Another way of saying that the buyer is king.
What is consumer sovereignty?
The goal of fairness in society
What is equity?
Laws that require companies to give consumers important information about their products
What are public disclosure laws?