Types of Economies + 1 More
This type of economy relies on customs and traditions.
➡️ What is a traditional economy?
System in which private individuals own most businesses.
➡️ What is capitalism?
This law states that producers make more goods when prices rise.
➡️ What is the law of supply
This law states consumers buy more when prices fall.
➡️ What is the law of demand?
A market with many sellers and identical products.
➡️ What is perfect competition?
In this economy, decisions are based on supply, demand, and prices.
➡️ What is a market economy?
This system aims for shared ownership and reduced inequality.
➡️ What is socialism?
The amount producers are willing to offer at a certain price.
➡️ What is quantity supplied?
A news report says sugary drinks are dangerous. What happens to demand?
➡️ Demand shifts left.
A market dominated by one company.
➡️ What is a monopoly?
This type of economy is run by the government, which makes all economic decisions.
➡️ What is a command economy?
A system where the government owns all property and resources.
➡️ What is communism?
New technology makes producing computers cheaper. Which way does supply shift?
➡️ What is right (increase in supply)?
What are Goods used together, like phones and chargers?
What are Goods that can replace each other, like butter and margarine?
➡️ What are complementary goods?
➡️ What are substitute goods?
A market with only a few large firms controlling most production.
➡️ What is an oligopoly?
This economy blends government involvement and free-market principles.
➡️ What is a mixed economy?
This system uses both government regulation and market forces.
➡️ What is a mixed economic system?
A government subsidy is given to corn farmers. Supply shifts which way and why?
➡️ Right — subsidies lower production costs.
The price of Pepsi rises. What happens to the demand for Coke?
➡️ Demand shifts right — they are substitutes.
A market where many sellers offer similar but not identical products.
➡️ What is monopolistic competition?
This is something that sets a limit on the highest & lowest a price can be
➡️ What is a price ceiling & price floor?
*Daily Double* What is the system in US? In N.Korea?
What is Mixed & Command
What is the relationship between equilibrium price and quantity produced?
Equilibrium occurs where quantity demanded equals quantity supplied, setting the market price.
Consumers expect the price of gasoline to rise next week. What happens now?
➡️ Demand shifts right as people buy early.
The price is very flexible?
What is elastic?