Economic Systems
The two main types of economic systems.
What are market and command?
Free enterprise is driven by the concepts (or laws) of _______ & _______
What is supply & demand?
When supply is greater than demand, this occurs.
What is a surplus?
This economic indicator is the measure of people who are willing & able to work but who cannot find a job.
What is unemployment rate?
An early form of an economic system that was based on customs, religious beliefs and cultural practices
What is a traditional economy?
Takes care of the people's needs in a mixed economy.
What is the government?
When demand is greater than supply, this occurs.
What is a shortage?
This economic indicator tells us that the cost of living, or the prices of goods and services is increasing and getting more expensive.
What is inflation rate?
This economic system occurs when economic decisions are made according to the laws of supply and demand.
What is a market economy?
This is the point where supply and demand are equal and maximum profit is expected to occur.
What is equilibrium?
In this stage of the business cycle unemployment is at its highest and productivity at its lowest. A severe economic decline.
What is depression?
The economic indicators measures the total value of all goods and services produced within a nation in a given year.
What is gross domestic product (GDP)?
This type of economy is when a central authority makes the key economic decisions and the central authority is usually the government or state.
What is a command economy?
Takes care of people's wants in a mixed economy.
What is the marketplace?
Supply and demand have this type of relationship.
What is inverse?
A period of economic contraction lasting 6 months to 2 years.
What is a recession?
What is standard of living?
Most economies are a combination of command and market because they don't always work in practice.
What is a mixed economy?
When prices increase, supply will _________.
What is increase?
This phase of the business cycle sees businesses expanding, consumers spending and unemployment decreasing.
What is a recovery?
the total amount of money a government owes.
What is national debt?