Vocabulary
Mixed Economy
An economic system that combines elements of capitalism and socialism; in a mixed economy, the government regulates private enterprise
The basic goal of a socialist economy
To share wealth more equally in a society.
In the United States, the government owns some land, but the private sector owns most property & resources and patents are supported. They are a
Capitalist economy
A mixed economy is
An economy that blends components of two or more of the following economic systems to varying degrees: traditional, market, and command
Advantages of market economies for the people include
High degree of individual freedom, wide variety of available goods & services, high degree of consumer satisfaction
Traditional economies
Individual roles and choices are defined by the customs of elders and ancestors
People have free access to
Basic necessities like food, housing, healthcare, and education
Sweden maintains fairly simple regulation of private businesses and offers free education & healthcare. Their economy is
Capitalist
Programs commonly seen in mixed economies, created during the 1930s
Social and welfare programs
Disadvantages of market economies include
Poverty, basic needs are not provided, high degree of uncertainty, people lose jobs & businesses fail easily, based off greed, profit put before people
Socialism
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
Socialists believe that
Sharing ownership of the means of production equally among society would increase people's quality of life.
In Russia, enterprises are state owned and operated. Their economy is
Communism
The government steps in, in order to
Handle inequities in the system
Adjusts to change are based on
Consumer wants
Entrepreneurial ability
Person that develops the idea
The government follows socialism by
They have their policies directed to making essential goods and basic social services available more or less equally to all.
In Cuba, 80% of Cubans are employed by the government. Their economy is
Communist
The disadvantages of a market economies
Poverty, high degree of uncertainty, people lose jobs and businesses fail, market does not provide for people's basic needs, and profit is put before people
Supply and demand
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.
Is Venezuela a socialist country if their government controls several industries, using revenues to subsidize food, housing, health care, and education
Yes, wealth is being equally shared to everyone
Singapore has a pro-business and pro-foreign investment economic policy. They are...
Capitalist
The four factors of production
Land, labor, capital, and entrepreneurial ability
Things are produced
In whatever the most efficient way to make a profit is