Types of Economies
In this type of economy buyers and sellers independently answer the three economic questions and are made by voluntary exchanges in markets.
What is a free market economy?
These two ideas define something essential for survival, and something desired rather than necessary.
What are needs and wants?
This is shared for which it would be inefficient or impractical to make consumers pay individually and to exclude those who did not pay.
What is a public good?
The struggle of producers to for the dollars of consumers. In a mixed or free market economy this is very important and the government attempts to regulate it.
What is competition?
This is a type of business owned by a single individual.
What is a sole proprietorship?
In this type of economy the government rather than individual producers and consumers answer the three key economic questions.
What is a centrally planned or command economy?
The idea that there are limited amounts of good and services available to meet unlimited needs.
What is scarcity?
What is the labor force?
Consumer expectation, change in population size, change in demographic, consumer taste in advertising and prices of related goods are all known as______.
What are non-price determinants of demand.
This type of businesses main goal is to provide a service to the public rather than make money.
What is a non-profit?
In this type of economy there are elements of both a market economy and some level of government involvement.
What is a mixed economy?
These are things that firms sell to consumers.
What are goods and services?
This is what encourages a person to behave a certain way based on hope of reward or fewer of punishment. In economic principle it is what drives someone to decide how to satisfy their needs and wants.
According to this law producers offer more of a good or service as its price increases and less as its price falls.
What is the law of supply?
The Federalists and Anti-Federalists disagreed about the creation of this.
What is a national bank?
This is an arrangement that allows buyers and sellers to interact.
What is a market?
Land, Labor and Capital.
What are the factors of production?
This takes place when a consumer reacts to a rise in price by buying less of a good or another similar good in its place.
What is substitution effect?
This law states that when a good's price goes down the quantity desired goes up. When a good's price goes up, the quantity desired goes up.
What is the law of demand?
This is the name for the central bank of the United States that issues currency and can lend other banks money in times of financial crisis.
What is the Federal Reserve?
The nations economic health is measured by the total value of all final goods and services produced in a country in a given year.
What is GDP or Gross Domestic Product?
What goods and services should be produced? How should these goods and services be produced? Who consumes these goods and services?
What are the three key economic questions?
The three main uses of this are: medium of exchange, unit of account and/or store of value. Its 6 characteristics include that it is durable, portable divisible, uniform, that it is in limited supply and acceptable as payment.
What is money?
The way that consumers respond to price changes is called__________.
Governments try to regulate these to ensure competition in a free market or mixed economy.
What is a monopoly?