Economic Systems
Economic Goals
Vocabulary
U.S Economic System
Gains from Trade
100
Traditional Economy
What is the economy that relies mostly on agriculture?
100
economic freedom
What is the ability to make our own decisions without interference from the government?
100
voluntary exchange
What is the act of willingly trading one item for another with a gain for both parties involved?
100
competition
What is freedom to compete with each other and when competition happens, consumers benefit?
100
"coincidence of wants"
What is bartering? When one person wants something the other person has and that person wants something that the first person had.
200
Command Economy
What is an economy that is dictated by the decision of one ruler?
200
economic stability
What is when all of the goods and services we want are always there when we need them?
200
mass production
What is large scale manufacturing?
200
limited government
What is businesses have laws to follow, but are free from government control?
200
economic interdependence
What is dependence on other people or countries to produce many of the goods and services we want?
300
Market Economy
What is an economy that runs on the decisions of individual producers and consumers?
300
economic equity
What is a fair and just distribution of the society's wealth?
300
specialization
What is when someone becomes skilled or fluent in a specific activity?
300
equal opportunity
What is everyone has the same legal rights to seek education and compete in the marketplace?
300
Commerce Clause
What is something that the founders developed to allow trade with foreign nations and states?
400
Mixed Economy
What is an economy that relies on participation from both the government and the individual?
400
economic growth
What is growth over time when it produces more and better goods and services?
400
absolute advantage
What is when someone can produce a good or service using fewer resources than someone else?
400
property rights
What is the right to buy, sell, and control the use of our own property?
400
Wealth
What is the total value of everything a person owns? It can be monetary or non-monetary.
500
Free Market Economy
What is an economy where no one tells the producers and consumers what to do?
500
economic security
What is provides its less fortunate citizens with the support they need to live decently?
500
comparative advantage
What is the condition at which someone can produce a good or service at a lower opportunity cost that someone else?
500
Profit motive
What is the desire for profit? This increases our incentive to work and create new businesses.
500
Trade makes us wealthier by...
What is moving goods to those who value them, increasing the quantity and variety of goods, and lowering the costs of goods?
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