Economics Basics
This is the way a society produces and distributes goods and services.
Economic Systems
In this economy, the government makes all economic decisions.
A Command Economy
What is a mixed economy?
An economy that combines elements of all systems.
What are the four factors of production.
land, labor, capital, and entrepreneurship
Regional Tribes are what type of economy?
Traditional
This type of economy relies on customs and traditions.
traditional economy
In this system, the government owns all factors of production and there is little political freedom.
Communism
Economic activity that crosses international borders is known as what?
global economy
This economist wrote Das Kapital.
Karl Marx
The United States is what type of economy?
Mixed-Market
This type of economy is based on individual choice and voluntary exchange.
a market economy
This system includes some government ownership but more political freedom than communism.
Socialism
What is privatization?
When the government gives control of a business over to private owners.
The working class, according to Marx.
the proletariat
North Korea is what type of economy?
Command
Name the three essential economic questions.
What to produce?
How to produce?
For whom to produce?
What is authoritarianism?
This term describes a system requiring absolute obedience to those in power.
What is nationalization?
When the government takes ownership of a private company.
What is consumer sovereignty?
It is the idea that consumers have the ultimate control over what is produced through their buying choices.
China is what type of economy?
Command with elements of Market
List 2 advantages of a Command Economy & 2 advantages of a Market Economy
Command- stability, clear direction, ability to quickly mobilize resources
Market- Voluntary exchange, supply and demand, competition
This type of economy is also called a centrally planned economy.
Command Economy
What does Laissez-faire mean economically?
When did it change in the United States?
Do we use Laissez-faire economy now in the United States? Why or why not?
The government should not interfere with the marketplace
After the Great Depression
No we do not, because the government is involved in almost every aspect of our lives economically speaking.
BONUS (If you got this question right)- 100PTS
What was the term we mentioned as to how the government is very involved in all of our lives no matter how old we are?
Describe what a Product and Factor Market are.
A Product Market is where goods and services are bought and sold, and a Factor Market is where factors of production are bought and sold.