Questions #1
Name a basic element found in all economic systems. (Four answers)
Resources, Markets, participants, Medium of exchange.
Name a reason why we need economic systems.
Our wants are unlimited, but our resources are not. People are independent.
Name a basic economic question.
What will be produced? How will products be produced? How will products be allocated.
Name a problem with socialist command economic systems.
High taxes. Less efficient production. Wages are based on the value of work in the eyes of government.
Name a type of economic resource.
Natural resources, Human resources, and Capital goods.
Name an example of a market economy.
United States, Japan, India.
Name a consideration in deciding what to produce in a market economy.
Profitability, consumer demand, resource availability.
Name a past or present example of a communist economy.
Soviet Union, China, Cuba, North Korea.
Name a characteristic of a socialist economy.
The government owns some basic means of production, but there is private ownership of the business. Taxes are high. The government provides free medical care, education, financial assistance, etc. Workers can choose where to work. The government sets workers' wages. Capital for business investment comes from private and public sources.
Name a characteristic of a market economy.
Individuals and businesses own the means of production. Government control is limited. Competition exists. Producers determine how to use resources. Prices are controlled by supply and demand. Activity moves in a continuous cycle
Name a factor that impacts economic decision-making in a traditional economic system.
Tradition, habits, customs, beliefs.
Name a problem with market economic systems.
Financial and legal risk, attempts to capture entire market, cheaply made products, unequal incomes.
Name a example of a socialist economy.
Norway, Sweden, Denmark.
Name a type of economic system.
Traditional, Communist command, socialist command, Market.
Name a problem with communist command economic systems.
Few quality consumer goods, inefficient production, and little chance to improve workers' situations.
Name a participant in an economic system.
Producers, consumers, government.
Name a example of a traditional economy.
Villages in the Andes Mountains. Amazon Rainforest communities. The Aborigines of Australia. Rural areas in Africa.
Name something that the government does in a communist command economy.
Owns and controls means of production. Conducts central planning. Sets workers' wages. Sets prices. Sets production quotas. Provides capital for business investment.