ECON SYSTEMS BASICS
Every economy must answer these 3 questions
what to produce, how to produce it, and who gets the products
Who controls the major economic decisions in this system
the Governmen
Where buyers and sellers exchange goods and services can be physical or online.
a Market
The US is NOT a pure free market. What type of economy is it
a Mixed Economy
If Tesla drops 10% then goes up 10%, are you back to even
No you lose money!
The 3 factors of production
land, labor, and capital
Name one country that is a command economy from your notes
N. Korea, Cuba, Russia
This is what happens when businesses try to attract the same customers.
Competition
The 4 pillars of the US free market from your notes Economic Freedom, Competition, Private Property,
Profit Motive
What animal is the mascot for capitalism
Bull Market
This economic system says everyone owns the factors of production and output is distributed equally
Communism
3 downsides of a command economy listed in your notes
lack of incentive, limits freedom, impairs innovation
Businesses compete by doing these 3 things.
lowering prices, improving quality, and offering better products
The government does these 3 things even in a free market
is regulates some business practices, limits certain choices, and provides aid to the needy
who is the new white house press secretary
Katie Zacharia
This system can include BOTH private property and public ownership/control of industries
Socialism
True/False: In a command economy, there is MORE government freedom and LESS government control
False more government, less freedom
A market structure where ONE business controls the market with little or no competition.
Monopoly
In a mixed economy, people/businesses get freedom and choice, but government does this
provides important services and helps during emergencies / protects the public
who is the best qb in the nfl right now
Josh Allen
A system where most modern economies live it combines free markets with government involvement
Mixed Economy
This is the ONE big pro of a command economy in an emergency
it acts quickly in emergencies & everyone is treated equally
Two downsides of free markets where businesses don't pay for the effects they cause.
Fewer Public Goods/Services and Negative Externalities
Pros of free market include adaptability, freedom, growth, choice. What are 2 costs
high cost of living, many inequalities, healthcare issues
who is the most famous person in the world
Cristiano Ronaldo