Types of Economies
Central ownership, usually the government, owns all property and resources and there is a lack of consumer choice.
What is a command economy?
The US has characteristics of a free market economy, but it has some aspects of command and traditional economies. This is an example of which type of economy?
What is a mixed economy?
The point at which the supply and demand curves intersect and where price is determined.
What is the equilibrium point?
Which term is used to describe the worst economic times when many people lose their jobs and numerous businesses close?
What is a depression?
Limited resources force societies to make choices about what they will produce and for whom they will produce it bases on...
What is scarcity?
This type of economy is characterized by mostly free market economy with limited government involvement.
What is a free market economy?
Steps in and provides goods and services for citizens when the perceived benefits outweigh the anticipated costs.
What is the US government?
Consumers will buy more of a good or service at a lower price and less if the price is higher
What is the law of demand?
When the economy reaches its lowest point, it is said to be in a ...
What is a trough?
Factors of production that are used in the production of goods and services. Types are natural, human, capital and entrepreneurship.
What are resources?
In this type of economy, the individual businesses make decisions for the private sector and the government makes decisions for the public sector.
What is a mixed economy?
The US government intervenes in the economy by encouraging competition in the market place in order to prevent the formation of what?
What are monopolies?
Producers will produce more if they can sell for a higher price and less when they can sell for a lower price
What is the law of supply?
The rise in costs of goods and services is called...
What is inflation?
The using of goods and services. Consumer preferences and price determine what is purchased and consumed.
What is Consumption?
In this type of economy, people often perform the same type of work as their parents and grandparents, regardless of ability.
What is a traditional economy?
In the US economy, most decisions regarding the production of goods and services are made where?
What is the private sector?
Lower prices and discount sales that incite buyers to buy are ...
What is an incentive
The economy goes from good times to bad and then back to good again in the...
What is the Business Cycle?
When choices are made, what is given up?
What is opportunity cost?
The consumer decides what will be produced based on what they purchase.
What is consumer sovereignty?
Payment made by individuals and corporations based on income received and used to provide goods and services through the public sector.
What are income taxes?
Labor, raw materials, capital and entrepreneurship that are used in the production of goods and services.
What are resources?
The opposite of expansion is called...
What is contraction?
Coins, paper bills and debit cards or checks are examples of this, but credit cards are not.
What is money?