vocabulary
Limited resources vs. unlimited wants
What does the term scarcity mean?
command economy
what is soviet union economy type?
Reward or punishment that influences behavior
What is the Definition of incentive?
The level of comfort measured by goods and services available
What is "standard of living" measures?
Decisions in traditional economy based on
What is habit, custom, or religious tradition?
Government aid for those in need (e.g. Social Security, unemployment insurance)
What is a social safety net?
United States, Singapore, or Hong Kong
What is a country with high economic freedom
Promoting fairness can reduce motivation and efficiency
What is why trade off equity for growth?
Goal measuring fairness
What is equity?
Central planners or the government
Who makes decisions in a command economy?
The way of a society organises production and distribution of goods and services
What is an economic system
Market or mixed economy
what is U.S. economic system type?
More growth can reduce sustainability or equity
What is example of tradeoff?
If population grows faster than production
What is standard of living decreases?
Economy where buyers/sellers interact
What is a market economy?
Fairness or justice in how wealth and resources are distributed
what is equity
Amish economic system type
what is Traditional economy
They protect the environment but limit production and growth
What are environmental laws reducing efficiency?
Confidence people have in supporting themselves; provided by jobs and social programs
What is economic security?
Combines elements of market and command systems
What is a mixed economy?
ability to maintain resources for future generations without depletion
what is sustainability?
North Korea: command economy, poor & restricted; South Korea: market economy, wealthy & free
what is North Korea vs. South Korea
Provides security without fully taking away economic freedom
How does the social safety net balance goals?
Outcome: everyone gets same result; Opportunity: everyone has same chance to succeed
What is the equality of outcome vs. opportunity?
Security and stability; Little freedom, slow growth, low living standards
What are the advantages/disadvantages of traditional economy?