Section Onesy
The way a society uses is scarce resources to satisfy its peoples unlimited wants.
Economic Systems
Centrally planned economy aka
Command
Private Property Rights
Any place where people buy and sell goods.
Market
A tool that economists use to understand how market economies work.
Circular Flow Model
Traditional
Economic system which the government owns SOME of the factors or production, and the people own the rest.
Socialism
An economic system based on private ownership of the factors of production. (Another name for Market Economy)
Capitalism
French phrase meaning "Leave things alone".
Laissez Faire
The market for goods and services.
Product Market
Economic system which the government answers all three economic questions.
Command
More extreme form of socialism in which there is no private property and grew out of Marx's thinking.
Communism
A trade in which the parties involved anticipate that the benefits will outweigh the cost.
Voluntary Exchange
A financial gain from a business transaction.
Profit
The market for factors of production.
Factor Market
Economic systems based on individual choice.
Market
Absolute obedience to authority
Authoritarian
The idea that consumers are free to purchase what they want and to refuse products they do not want.
Consumer sovereignty
Two or more businesses acting to the get the business of others.
Competition
The suppliers in a Product market are the ______
Businesses/Producers
Thomas Moore wrote this book about a society without scarcity.
Utopia
Karl Marx wrote 2 books. Name one of them.
Communist Manifesto
Das Kapital
Specialization
In a Market Economy, the ___________________ holds the real power.
Consumer
The suppliers in a Factor market are________
Consumers/Individuals