Economic Systems
The way in which a society decides how to use its resources to produce and distribute goods and services
What is an economic system
An arrangement for buying and selling.
What is a market
This is a system in which individuals/businesses decide what, how, and how much will be produced/sold
What is capitalism
When money is made by a business after all expenses have been paid off
What is profit
Father of capitalism
Who is Adam Smith
This is a system in which decisions are based on customs. (Amish)
What is a Traditional-Based Economy
People who buy goods and services
Who are consumers
These are people who create goods and services
Who are producers
Another name for capitalism
Free market Economy, Market Economy, Free Enterprise
Another name for a socialism/communism
Command Economy
This is a system in which a central agency owns/controls and decides what goods a country will produce. (North Korea, Cuba, and Former USSR)
What is a Command Economic System
A rivalry among sellers to attract customers
What is competition
This is one or more persons living together, economically speaking
What is a household
Business Owner or creator
Entrepreneur
Father of Socialism/Communism
Karl Marx
individual people and businesses decide what, how, and how much they will produce and how the products will be distributed.
What is a Market Economic System
This allows individuals to make economic decisions that they believe are in their best interest
What is economic freedom
The power of buyers to decide through purchasing which goods and services are produced
What is a consumer sovereignty?
This market has several features including: Private property, economic freedom, government regulations, voluntary exchange, etc.
What is a Mixed Economy
One major side effect of socialism is the _____________ of _____________.
Redistribution of Wealth
This has some features from traditional, command, and market economic systems. (USA and most other countries)
What is a Mixed Economic System
Government-run and in control of healthcare or government giving free college education are examples of this type of economic system.
Socialism/Communism
This is property owned by a business or individual
What is private property
Unequal distribution of Wealth
These help protect employee rights, stop monopolies, and hold companies accountable (example: environment).
What are advantages of government regulation