Vocabulary
A limited supply of something
Scarcity
Sally enjoys going shopping. She has so many options when she goes shopping because people are able to open their own business in the type of economy she lives in.
Market
Jim came home from work. He was tired of meeting production quotas set by the government. He really wanted to start his own business, but that was not allowed in the type of economy he worked in?
Command
Are there any economies that are Pure Market or Pure Command?
No
Who decides what goods and services to produce, how to produce the goods and services, and for whom to produce the goods and services in a Command Economy?
The government
The amount available and how bad someone wants something
Supply and demand
a system of exchanging (trading) goods or services. No money is used
Barter
the required amount of a specific good that must be produced in a given amount of time
Production Quota
What are the 3 basic economic questions?
What goods and services should be produced?
How should goods and services be produced?
Who are the goods and services produced for?
How does someone that lives in a traditional economy decide what job they will do when they grow up?
they will do the same job that their parents do because the jobs are passed down from generation to generation
the way a society organizes the production, distribution, and consumption of goods and services
Economic System
the financial earnings of a person (how much money someone makes)
Wage
an economy that has a blending of market and command economies
Mixed Economy
decentralized economy where decisions are guided by changed in prices that occur between individual buyers and sellers (supply and demand) in the marketplace
(Pure) Market Economy
centralized economy where the government planning groups make all the basic economic decisions
(Pure) Command Economy
a person who creates their own business
Entrepreneur
In this country very few people own businesses and farms. The government owns most major businesses.
Cuba
What type of Mixed Economy is Brazil and Mexico?
Market Leaning
the customs, traditions, and habits of the past are used to decide what and how goods with be produced, distributed, and consumed
Traditional Economy
`What type of Mixed Economy is Cuba?
Command Leaning
a 0-100 scale which ranks world economies from most command leaning (0) to most market leaning (100)
Economic Continuum
What type of Economy is Cuba, Mexico, and Brazil?
Mixed Economy
In this country people are allowed to start their own business, but it is a long and hard process to get the permits because of the governments rules and regulations.
Brazil
In this country the citizens can own their own businesses and farms. They are free to decide what to sell and the prices on the goods/services. It is easier to start a business in this country than the other two
Mexico
In what country does the government owns most of the resources and property, and decides what and how much are to be produced.
Cuba