Chapter 2 - Economic Systems

Vocab

100

Economic system that has some combination of traditional, command, and market economies

Mixed economy

200

Rewards and punishments that motivate behavior

Incentive

300

People cannot access a good/service unless they pay a fee or qualify in some way

Exclusive/non-exclusive

400

Organized way a society provides for the wants and needs of its people

Economic system

500

Economic system in which the government owns some factors of production (i.e. key industries) and has a role in determining what and how goods are produced

Socialism

Public Goods/Services; Private Goods/Services; Toll Goods; Common-Pool Resources

100

This type of good/service is non-exclusive and subject to shared consumption. Name the type of good/service and list one example. 

Public goods/services. Some examples include national defense, street lights, libraries, public parks

200

This type of good/service is exclusive and NOT subject to shared consumption. Name the type of good/service and list one example. 

Private good/service. Some examples: getting your car repaired, groceries, haircut, fountain drink

300

This type of good/service is exclusive and is subject to shared consumption. Name the type of good/service and list one example. 

Toll good. Some examples include: amusement park (King's Island), toll road/bridge, electric power, college education, movie theater

400

This type of good is not exclusive and is NOT subject to shared consumption. Name the type of good/service and list one example.

Common-pool resource. Some examples include: fish taken from the ocean, pinecones taken from the forest, water taken from an irrigation ditch

500

Define what a free-rider is and list one example of a good/service that could allow for free-riders

A free-rider is someone who receives the benefit of a good/service but does not pay for it. If you do not pay taxes, you could be considered a free-rider because you do not pay for public goods/services (national defense, public parks, libraries, etc.)

Advantages of Economic Systems

100

This type of economic system is able to adjust to change gradually because of market forces (supply, demand, etc)

Advantage of a Market Economy

200

DOUBLE JEOPARDY (This question is worth 400 points!)

This type of economic system produces a large number of goods and services for consumers

Advantage of a Market Economy

300

This type of economic system is capable of dramatic change in a short period of time

Advantage of a Command Economy

400

In this type of system, one advantage is that everyone has a role to play (usually predetermined based on ritual, habit, custom, etc.)

Advantage of Traditional Economy

500

This type of economic system emphasizes equality of opportunity

Advantage of Command Economy

Disadvantages of Economic Systems

100

This type of economic system lacks effective incentives to get people to work productively

Disadvantage of Command Economy

200

In this type of economic system, government leaders often provide for themselves at the expense of the public

Disadvantage of Command Economy

300

In this type of economic system, the lack of progress often leads to economic stagnation and a lower standard of living

Disadvantage of Traditional Economy

400

This type of economic system rewards only productive resources and does not provide for people too young, too old, or too sick to work.

Disadvantage of Market Economy

500

This type of economic system does not produce enough public goods such as healthcare, national defense, education, etc.

Disadvantage of Market Economy