Econ Questions & Goals
Why must every country answer the basic economic questions?
Every country must deal with scarcity
In a free market, production is largely determined by what this group wants.
Who are buyers/consumers?
Another name for a command economy.
What is a centrally planned economy?
Every country today has some form of this economy.
What is a mixed economy?
This measures the total value of all final goods and services produced within a country in one year.
What is Gross Domestic Product (GDP)?
This economic goal means using resources wisely while minimizing waste.
What is economic efficiency?
This is when buyers and sellers focus on their own personal gain.
What is self-interest?
In a centrally planned economy, this institution answers the three basic economic questions.
What is the central government?
This allows people to create businesses and products and compete in the public market.
What is free enterprise?
This branch of economics studies the entire economy.
What is macroeconomics?
This economic goal allows individuals to decide how to earn income, own property, and purchase goods and services.
What is economic freedom?
This struggle between producers helps keep prices low and quality high.
What is competition?
In a command economy, land and capital are primarily owned by this group.
What is the government?
This allows anyone to compete in the marketplace and make their own agreements and decisions.
What is open opportunity?
Name the three major government macroeconomic goals.
What are stable prices, high employment, and steady growth?
This economic goal means resources are divided in a way viewed as fair.
What is economic equity?
In this market, firms hire workers, rent land, and acquire other factors of production from households.
What is the factor market?
Socialists focus heavily on this economic goal, in which resources are distributed more equally.
What is economic equity?
In the United States, prices are generally based on these two forces.
What are supply and demand?
A period of economic growth followed by a period of decline is called this.
What is a business cycle?
Name all three basic economic questions.
What are what goods and services should be produced, how should they be produced, and who consumes them?
In this market, households purchase goods and services produced by businesses.
What is the product market?
According to the slideshow, producers in centrally planned economies have little incentive to make better products through this process.
What is innovation?
Name three characteristics of the American free enterprise system
Any three of private property, economic freedom, voluntary exchange, competition, contracts, and self-interest.
The government issues these to protect inventions so inventors can profit from their creations.
What are patents?