Bonus
Economists and anthropologists believe every economy starts off as which type?
Traditional
A traditional economy relies on bartering. What is bartering?
To trade goods or services without the exchange of money
What are the four factors of production?
Land, Labor, Capital, Entrepreneurship
A mixed economy is a combination of which economic systems?
Traditional, Command, Market
Many traditional economies exist in which type of society?
Hunter-Gatherer Societies
Define economic system
What is a system that determines the allocation of production and distribution of goods and services in a country.
A capitalist economy follows the laws of ________ and _______.
What is supply and demand
What is a disadvantage of a traditional economy?
They are also vulnerable to market or command economies. Those societies often consume the natural resources traditional economies depend on or they wage war.
What is a shortage?
A situation in which quantity demanded is greater than quantity supplied
One role of the government in the Capitalist Economy?
What is issue of money, collect taxes, provide essential services
Which North American Country uses the Mixed Economy System?
What is Cananda
What is an advantage of a traditional economy?
Since traditional economies are small, they aren't as destructive to the environment as developed economies.
What does opportunity cost mean?
The most desirable alternative given up as a result of a decision.
What does GDP stand for?
What is gross domestic product
Where could you find traditional economies today?
Many countries have isolated pockets inside them that function as traditional economies. 70% of the Haitian population relies on subsistence farming for their livelihood. In the artic regions of Alaska, Canada, and Greenland indigenous people like the intuit still employ a traditional economy.