Economic Systems
Methods societies use to produce and distribute resources.
What are economic systems?
In traditional economies, the answer to this economic question is focused on what is needed to survive rather than wants.
What is what is produced?
Mixed market economies are a mixture of what other two types of economic systems?
What are free market and command economic systems?
This is another name for Command Economies.
What is a centrally planned economic system?
These two groups control free market economies.
What are firms and consumers?
What to Produce?
How to produce it?
Who to produce it for?
What are the three economic questions?
Goods and services in traditional economies are primarily produced through what means?
What is hunting and agriculture?
The Government and Firms decide the answer to this economic question.
What is how goods and services are produced?
A political philospohy based on the belief that wealth should be distributed evenly throughout society.
What is socialism
The development of skills in a specific kind of work.
What is specialization?
When everyone who wants to work has a job. Ideal range is 4% - 6%.
What is full employment?
These events make economies more susceptible to economic decline because of the devastation they cause to resources.
What are natural disasters?
Founder of the Invisible Hand Theory.
Who is Adam Smith?
A political system completely controlled by the government is called.
What is communism?
This model demonstrates the give and take between firms and households (consumers).
What is the circular flow model?
Level of economic prosperity achieved through growth. Determined largely by the monetary resources one has available.
What is Standard of Living?
When innovation is not saught and the economy suffers from lack of growth.
What is stagnant?
Mixed markets are controlled by who (three groups)?
Who is the Government, firms, and consumers.
What is a government taht demands obedience and does not allow individual freedom called?
What is authoritarian?
The two types of markets found in a circular flow model.
What are factor markets and product markets?
Government programs that protect people from the effects of economic downturns.
What are safety nets?
Traditional economies are focused on these three things.
What are family, tradition, and habit?
This theory states that when left alone, the natural forces of an economiy will correct themselves.
What is the Inivisible Hand Theory?
This country is an example of a command economy.
North Korea.
A medium that allows buyers and sellers of a specific good or service to interact in order to facilitate an exchange.
What is a market?