Economic Systems
An economy that is based on how decisions and actions are based on generational ways.
Traditional Economy
What term is defined as the desire for financial gain as an incentive for economic activity?
Profit Motive
A business owned by one person is known as a ___________________.
Sole Proprietorship
What type of market structure requires 1000s of competitors selling the exact same product?
Perfect Competition
Give an example of a natural monopoly
TBD
A economic system in which the government controls the factors of production and all economic decisions.
Command Economy
What term is defined as: The ability to choose where you work, what hours you work, etc...
economic freedom
A business owned by at least two people.
Partnership
What type of market is completely dominated by one firm or business?
Monopoly
Give one way a technological monopoly occurs?
Patent, Copyright
An economic system in which individual citizens and firms control the factors of production and all economic decisions.
Market Economy
Which term is best described as "transaction where two people trade goods or services freely"?
voluntary exchange
What is it called when there is a partnership but one person is inactive or owns a smaller piece of the business?
Limited Partnership
What type of market structure is dominated by few firms (3-6)?
Oligopoly
What is the "permission slip" the federal government gives a firm in order to start a corporation called?
Charter
Actually the most common form of economic system. Including many nations around the world with different ratios of government intervention and individual freedom among citizens
Mixed Economy
Someone who owns pieces of a corporation are best known as __________________.
Shareholders
What type of business organization does almost 90% of all business within the USA?
Corporation
What type of market organization requires around 100 firms that are all competing with very similar products? Traditionally small differences and advertisements make the difference.
Monopolistic Competition
What drives down prices (and is vital) for consumers in a market/capitalist economy?
competition
Give an example of what we consider today to be a
1. Traditional Economy
2. Command Economy
3. "Market" Economy (100% market does not exist)
.
What term is best described as, "a sum of money paid regularly by a company to its shareholders out of its profits"?
dividends
What business organization is the most common in the USA? Making up around 70% of all businesses.
Sole Proprietorship
Give the four types of legal monopolies in the USA.
Natural, Geographic, Government, Tech
What is one advantage and one disadvantage of a traditional economy?
TBD