Economic Systems
This system relies on habit, custom, or ritual to decide questions of production and consumption of goods & services.
What is Traditional Economy?
The raw materials that are turned into finished goods come from this factor.
What is land?
The impulse that encourages people to fulfill their own needs and wants. Adam Smith's metaphor states the invisible hand is guided by this.
What is Self-interest?
system in which decisions on production & consumption of goods & services are based on supply (firms) and demand (consumers)
What is Free Market/Enterprise?
The final products and services purchased by individuals or households.
What are Consumer Goods?
This system combines elements of a Command/Centrally Planned and Free Market?enterprise economies.
What is a Mixed Economy?
Also called Economic Justice, this Goal is reached when all members of society are fairly compensated for their labor.
What is Economic Equity?
A building, machine, or tool that is used in the production of other goods.
What are Capital Goods?
All other options available to you that you did not choose when making a choice.
What are trade offs?
What are the 3 economic questions every economic system must answer? (MUST use produce and consume in answer)
What is WHAT will we produce, HOW will we produce, and WHO will consume?
The work put in by individuals who produce products for consumers is this factor.
What is labor?
A product or service that is both non-excludable (cannot prevent non-payers from using it) and non-rivalrous (one person's use does not reduce availability to others).
What is public good?
How every economic system answers the 3 economic questions.
What is their goals and values?
The skills and knowledge needed to complete a task is this factor.
What is human capital?
This economic goal and value is the most important in a free enterprise/market system.
What is Freedom?