Economic Systems Overview
This type of economy relies on customs and traditions to make economic decisions.
traditional economy
In this economy, family traditions decide what jobs people do and how resources are distributed.
traditional economy
The question "What to produce?" asks what about an economy?
What goods and services should be created?
This country has a mixed economy closer to a market system than to a command system.
The United Kingdom
Something you can't live without.
Needs
This type of economy is controlled by a central authority that makes all economic decisions.
command economy
In this system, the government decides which products are produced, how they're made, and who receives them.
command economy
"How to produce?" refers to what aspect of an economy?
What methods and resources should be used for production?
The economy of this country is a blend of market and government planning and is known for its strong social welfare policies.
Germany
The amount of a good or service consumers are willing to buy.
Demand
In this economy, supply and demand primarily determine what goods and services are produced.
market economy
In this system, private businesses make production decisions based on consumer preferences.
market economy
This economic question determines the distribution of products and services.
"For whom to produce"?
This European country's economy leans more towards a command system, though it has some market elements.
Russia
The amount of a good or service available for sale.
Supply
Most economies today are a blend of market and command systems. What is this type of economy called?
mixed economy
In this system, economic activities are often based on subsistence farming or barter trade.
traditional economy
In a market economy, this group typically answers the question "What to produce?"
Consumers and producers
This aspect of a mixed economy balances market freedom and government regulation.
Economic Regulation
Whenever there are not enough resources to meet everyone’s needs and wants.
Scarcity
The economic system where resources are owned by individuals who make economic decisions with limited government intervention.
pure market economy
This system has aspects of both private enterprise and government control.
mixed economy
In a command economy, this entity usually answers "For whom to produce?"
The government?
In Germany, these are government provisions that ensure social safety nets.
Social welfare programs
What are the FOUR factors of Production?
1. Natural Resources
2. Human Resources
3. Capital Goods
4. Entrepreneurship