Vocab
Any arrangement that allows buyers and sellers to exchange things.
What is a Market?
System where prices, wages, and the production of goods are determined by private businesses and consumers through supply and demand, with little or no government control
What is a Free Market?
This is the economic system in which a central authority makes decisions about the production, distribution, and pricing of goods and services.
What is a planned economy?
This economic system combines market-based elements with government involvement.
What is a mixed economy?
A product or service that people can use without reducing its availability to others is called this.
What is a public good?
Rewards or costs resulting from specific behavior.
What is an Incentive?
This term describes a government that largely stays out of the economy and hands off.
What is laissez-faire?
In this type of economy, the government has total control and uses a strict command-and-control system.
What is a controlled economy?
This is the process of selling a government-operated business or enterprise to private individuals.
What is privatization?
This problem occurs when someone benefits from a shared resource or public good without paying or contributing to its cost.
What is the free-rider problem?
A product or service that anyone can use without reducing its availability to others
What is a Public Good?
Created the system of Free Market and is known as the "Father of Economics"
Who is Adam Smith?
This economic system seeks greater financial equality through government control and redistribution of wealth, while individuals may still own some private property.
What is socialism?
Adam Smith supported the free market but also recognized the need for this in certain situations.
What is government intervention?
This occurs when the free market, operating on its own, does not distribute resources efficiently.
What is market failure?
An economic system that organizes society into distinct interest groups, such as workers, businesses, and professional associations, which work together under state guidance
What is Corporatism?
The dynamic market process where independent sellers rival for consumer business by offering lower prices, higher quality, or better products.
What is Competition?
North Korea is an example of this type of economy, where the leadership decides what is produced, how it is produced, and who receives it.
What is a totally controlled economy?
This country allows people to operate private businesses while the government makes laws to protect private property rather than controlling the entire economy.
What is the United States?
Pollution is an example of this type of externality because it creates a cost for people who may not have been involved in producing the product.
What is a negative externality?
A market where consumers buy finished goods and services.
What is a Product market?
Businesses buy resources like labor, land, and capital in this market
What is a Factor market?
This political system adopts corporatism, but alters the economy into a hierarchy with the government at the top, businesses below the government, and workers at the bottom.
What is Fascism?
This set of rights gives people and businesses the right to control their possessions and use them as they wish.
What is Private Property Rights?
SNAP, Medicaid, Medicare, and Social Security are examples of programs that make up this system.
What is the welfare system?