Economic Systems
This economic model shows the equivalence of incomes and expenditures between firms and households
What is the circular flow model?
Coming from the Greek word meaning "Government by the people"
What is Democracy?
The business cycle measures the fluctuations of this economic variable
What is GDP?
A country is said to have this over another when they can produce more of something given the same amount of resources.
What is Absolute Advantage ?
In this type of economy, individuals, businesses and government all act independently of one another.
What is a Market Economy
Rule by a single individual or small group of people.
What is Autocracy or Authoritarianism?
This phase of the business cycle is characterized by two consecutive quarters of GDP growth decline
What is a recession?
A country is said to have this when they can produce a good at a lower Opportunity Cost than other country
What is Comparative Advantage
In this type of Economy, government makes all decisions regarding what to produce, and how income in distributed.
What is a centrally planned economy?
Refers to the system where only one political party exists.
What is Totalitarianism?
At this point the economy switches from expanding to contracting
What is a peak?
It is said that international trade can theoretically make two countries better of if they do this.
What is Specialization and Trade?
Most economies in the world share this economic system
What is a Mixed Economy?
Comparing the two main Political systems, this one is likely to be more difficult to establish and maintain.
What is Democracy?
What are
Recession
Trough
Expansion
Peak
** DAILY DOUBLE ** (2x Points)
The cost of giving up something to get something else.
What is Opportunity Cost?
All economic systems purport to answer these four questions.
i) What to Produce and for how much?
ii) How should resources be allocated?
iii) How should goods and services be distributed?
iv) What should be the prices of goods and services?
Proponents of this political system believe that consistent government allows for rational decisions to be made in the interests of the people with long-term focus.
What is Autocracy?
The government's might use _______ or _______ policy to _________ the severity of swings in the business cycle.
Monetary Policy, Fiscal Policy, lessen
While a country cannot have a __________ advantage in all goods and services, it can have an ________ advantage in producing all goods.
Comparative, Absolute