Questions of Economic Systems
What is Question 1 of Economic Systems?
What is an Economy?
Which goal does this definition most closely represent?
People choose how to participate
Freedom
Who is included in the consumers of the economy?
Everyone!
Which economic measurement most closely aligns with the following:
Total value of all final goods and services produced within a country’s borders
Gross Domestic Product (GDP)
What are four different economic types?
Traditional, Command, Market, Mixed
What are the three economic truths of this unit?
- People are incentivized to trade with each other
- Trading thrives in stability and security
- Every choice involves a trade-off, which involves weighing costs and benefits
What is Question 2 of Economic Systems?
What are the goals of an economy?
Which goal does this definition most closely represent?
Stable prices, supply of goods, and jobs
Security
Who is included in the producers of economies?
Companies and workers
Which economic measurement most closely matches the following:
Average cost of a “basket” of about 450 goods and services consumers typically buy
Consumer Price Index
What type of economy is this an example of?
The government owns the major factories and then controls what is produced.
Command
What is Question 3 of Economic Systems?
Who makes up an economy?
Which goal does this definition most closely represent?
Continued growth over time
Progress
What are the three players in an economy?
Consumers, Producers, Government
Which economic measurement most closely aligns with the following:
Percentage increase of price for goods and services over the previous year.
Inflation Rate
What type of economy is this an example of?
There are regulations with food companies which makes it so they have to list warnings and ingredients
Mixed
What is Questions 4 of Economic Systems?
How do we measure economies?
What are the four goals of an economy?
Freedom, Security, Equity, Progress
Who is included in the government of economies?
Regulators and Distributors
What are the four economic measurements?
Size, Affordability, Participation, Trust
What type of economy is this an example of?
Household items are made mainly within the community.
Traditional
What is Question 5 of Economic Systems?
What are the ways an economy can be set up?
Which goal does this definition most closely represent?
Fair and just distribution of resources
Equity
What is the name of the chart used to track relationships within the economy?
Circular Flow Diagram
Which economic measurement most closely matches the following:
Survey on the level of optimism or pessimism about the current and future state of the economy.
Consumer Confidence Index
What type of economy is this an example of?
If a product does not sell well, a company does not produce it anymore.
Market