Central authority (usually government) makes most of the WHAT, HOW and FOR WHOM.
What is a Command Economy?
100
When changes in the structure of the workplace change the need for workers.
What is Structural Unemployment?
100
The top of the business cycle.
What is the Peak?
100
Consumer and producers make their own economic decisions.
What is Economic Freedom?
100
A business that is jointly owned by 2 or more people.
What is a Partnership?
200
Combination of both a market and a command economy.
What is a Mixed Economy?
200
Workers who are in-between jobs (looking for another job).
What is Frictional Unemployment?
200
When the economy starts going down.
What is the Contraction?
200
Use scarce resources well and not wasteful.
What is Economic Efficiency?
200
A business recognized by law as a separate legal entity giving it all the rights of an individual.
What is a Corporation?
300
People and firms act in their own best interests to answer the WHAT, HOW and FOR WHOM.
What is a Market Economy?
300
Unemployment because of the change of the seasons.
What is Seasonal Unemployment?
300
Low point of the economy.
What is a Trough?
300
Equal pay for equal work.
What is Economic Equity?
300
Business owned by an individual or the members of a household.
What is Sole Proprietorship?
400
The decisions are made by the government in a Command Economy.
The people's decisions are like "votes" and they choose what to exchange in a Market Economy.
What is the difference between a Market Economy and a Command Economy?
400
Unemployment directly related to swings in the business cycle.
What is Cyclical Unemployment?
400
Time when the economy is in contraction for two consecutive quarters (6-8 months).
What is the Recession?
400
Protection from adverse events such as layoffs and illness.
What is Economic Security?
400
1. Easy to establish.
2. Easy to manage.
3. Usually can attract more financial capital than sole proprietorships.
What is 3 advantages of a Partnership?
500
The people have little, if any, influence over how the basic economic questions are answered.
How is the government involved in a Command Economy?
500
The number of people not working.
The person must be actively looking for a job.
What is Unemployment? How do you go into unemployment?
500
A long term, severe recession.
What is Depression?
500
Provide as many jobs as possible.
What is Full Employment?
500
1. Each partner is fully responsible for the actions of the others.
2. Limited life.
3. Potential for conflict between partners.