Vocabulary
A person who starts a new business
Entrepreneur
What Economies is this ?
Individual roles and choices are defined by the customs of elders and ancestors.
These economies are usually based in societies of hunters/gatherers
Sharing is a big part of these economies
Traditional Economies
Which economy advantages is this?
There is little to no uncertainty
Everyone know what role to play
Life is generally stable predictable and continuous
Advantage of traditional economies
Which economy disadvantages is this?
Tends to discourage new ideas and new ways of doing things
Lack of progress lowers standard of living
Disadvantages of Traditional economies
Money earned or taken in by a business that is in excess of the funds invention in operating the business
Profit
What Economies is this ?
Central authority controls the Economy
usually an authoritarian government
Command Economies
Which economy advantages is this?
The government has total control over production and its factors
whatever is needed most will be produced
There is no uncertainty people are told when and how to work.
Advantages of Command economies
Which economy disadvantages is this?
Economy designed to meet needs not wants
No incentive to work hard people don't often lose their jobs so they do the bare minimum to get by
No reward for initiative which slows progress
Disadvantages of Command Economies
An economic system in which the government owns the basic means of production distributes products and wages and provides social services such as health care and welfare
Socialism
What economy is this?
It has Lots of choices
Market Economies
Which economy advantages is this?
Adjust to change based on consumer wants
high degree of individual freedom
wide variety of available goods and services
Advantages of Market Economies
Which economy disadvantages is this?
poverty only those with money can participate
High degree of uncertainty people lose jobs businesses fail
Greed based system puts profits before people
Disadvantages of Market Economies
Economic system that combines elements of capitalism and socialism in a mixed economy the government regulates private enterprise
What economy is this?
Economic system that combines elements of capitalism and socialism
Mixed economies
Which economy advantages is this?
a focus on the common good, potentially leading to low unemployment and a more equitable distribution of resources
Advantages of Communism Economy
Which economy disadvantages is this?
slow economic growth, less entrepreneurial opportunity and competition, and a potential lack of motivation by individuals due to lesser rewards.
Disadvantages of Socialism economies
The exclusive right of an inventor to manufacture use and sell his or her invention for a specific period currently 20 years after which a patent may be renewed
Patent
what economic is this?
Capitalism
Which economy advantages is this?
Promotes the equitable distribution of wealth and social justice
Advantages of Socialism Economy
Which economy disadvantages is this?
Without the profit motive, there's less incentive for individuals to work hard, innovate, or take risks, leading to stagnation and lower productivity.
Disadvantages of Communism economies