Period of change in which an economy moves away from central planning toward a market-based system
100
What is one of the key economic questions?
1. What goods and services should be produced?
OR
2. How should these goods and services be produced?
OR
3. Who consumes these goods and services?
100
Define: Market
An arrangement that allows buyers and sellers to exchange things
100
Who answers the three economic questions for a centrally planned economy?
The Central Government
100
What economist believed in Laissez Faire?
What is Adam Smith
200
What is a modern economy?
Not one economic system can satisfy all economic goals and needs, so providing a combination of two differen economic systems attempt to meet all the needs
200
What is a characteristic of a traditional economy?
Habit, custom, ritual
OR
Little room for innovation
OR
Gender roles
200
Who answers the key economic questionsn in a free market?
The individuals
200
What does the term socialism mean?
To distribute wealth evenly throughout society, they have a democracy because the people elect their leader
200
What did Karl Marx help introduce?
Socialism, Communism
300
What is an advantage of a mixed economy?
Where the market may fail, the government will pick up some of the "slack." For example, the interstates are a public good that is provided for all, and uses money to maintain from taxes.
300
What is an example of a safety net?
Social security, FEMA, disability, FMLA
300
What term defines the struggle businesses have to get money from consumers?
Competition
300
What was one of the program's Russia focused their BEST land, capital, and labor?
Armed forces, space program, and the production of capital goods
300
What year did Russia's centrally planned economy fall apart?
1991
400
In the circular flow diagram of a mixed economy, what does the government take from businesses and households.
Taxes
400
What is another name for a market economy?
free markets or capitalism
400
What does the term "Invisible Hand" mean?
Self-interest and competition work together to regulate the market
Consumers get the price they want for items at around the price they want to pay.
400
What is a characteristic of a centrally planned economy?
The central government owns all land and capital
OR
The central government makes all economic decisions
OR
Each person is assigned a job
400
What is the product market?
Households/consumers are paying for services received from firms/businesses
500
Name a country where the Market System dominates in a Mixed Economy.
U.S., Hong Kong, Singapore, United Kingdom, Canada