Economic Systems
What is an economic system?
A way society decides how to use resources and produce and distribute goods
What is a command economy
The government makes all the decisions
What country is considered a free market?
New Zealand or Mexico
What gives people the right to choose
Freedom
what is 9+10
21
The three basic questions
What to produce?
How to produce it?
Who gets the goods and services?
What is one con
Less freedom
What is a free market?
The people own the factor of production
What gives consumers more choices
Competition
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What is a planned economy
Where the government makes many of the economic decisions
What country is a command economy
North Korea
Adaptability, freedom, growth, and choice
What allows people to own businesses
Private property
Who won the baseball series last year
Dodgers
Factors of production
Land, Labor, Capital, Entrepreneurship
What is one disadvantage of a command economy
High bureaucracy
What are the disadvantages?
Monopolies, fewer public goods, negative externalities, cutting corners
What motivates people to make money
Profit motive
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List an Example of the three nations that fall on the command side
Russia, China, Cuba
What can a command economy react quickly?
During emergencies
What would be an example of a good thing in our house
Freedom and Education
What does the government provide to help needy people?
aid, like welfare
How many bones does an adult human body have
206