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?
What phrase means the level of wealth or comfort of a nation?
living standards
-A violent revolution was necessary to help workers
-The workers would take the wealth from the rich
-little to no private property or businesses
-government controls all means of production and businesses
communism
In which form of government do the people have the power?
democracy
Which form of government is governed by a single leader who has complete control over all aspects of the government and is not restricted by a constitution, laws, or opposition.
dictator/dictatorship
name two of three questions all economic systems must answer
-How should it be produced?-Who should receive what is produced?
People who buy goods and services.
Who are consumers?
What word means the difference between the cost to produce a good and how much it is sold for?
profit
form of government where citizens rule through elected representatives
representative democracy (republic)
which system of government divides power and allows state and local governments to meet the needs of the people?
federal system/ federalism
What is another name for a capitalist economy?
-Free market system
-Free enterprise system
Which economic system provides the highest standard of living and economic freedom?
capitalism
Which economic system is usually run by a dictator?
communism
form of government ruled by a small group of powerful or wealthy elites
oligarchy
Which was the first system of government of the United States? It failed because the states kept the power and the central government was weak.
confederal system
Which economic system features the following characteristics?
-CITIZENS ARE FREE TO USE THEIR PRIVATE PROPERTY
-lITTLE TO NO GOVERNMENT INTERFERENCE
-COMPETITION
-PRODUCERS PRODUCE FOR A PROFIT
-LAWS OF SUPPLY AND DEMAND
Capitalism
Which economic system has the following characteristics?
-high taxes to pay for medical care and education
-government ownership of major industries such as energy and transportation
-some private business and private property is allowed
-
socialism
which economic system usually has lower standards of living because the government is inefficient
communiusm
this form of government is rule by one person and may be an absolute monarchy or dictatorship
autocracy
What idea about government do we see when a country's government has a legislative, judicial, and executive branch?
separation of powers
What word means resources (including money) that people and businesses save and invest?
capital
Who is the father of socialism/communism?
Karl Marx
How does competition benefit consumers in a capitalist economy?
-lower prices for goods
-new technologies are developed
Form of government with a king or queen that has no real power and that is a symbol of the nation
constitutional or limited monarchy
Which system of government would most likely have the same laws throughout the entire country?
unitary system