Economic Systems
What are the four main types of economic systems?
What is Market economy, command economy, mixed economy, traditional economy.
What does the law of supply state?
What is As prices rise, the quantity supplied increases.
What is a price floor?
What is A minimum price set by the government, usually to protect producers, such as minimum wage laws.
What are the four basic types of market structures?
What is Perfect competition, monopolistic competition, oligopoly, monopoly.
What does trade allow countries to do?
What is It allows countries to specialize in what they do best and exchange goods and services with other nations.
In which economic system do businesses make decisions based on supply and demand with little government intervention?
What isMarket economy.
What happens to demand when prices rise?
What is Demand typically decreases.
What is a subsidy?
What is A payment made by the government to encourage the production or consumption of a good or service.
What characterizes a monopoly?
What is A market structure where one company controls the entire supply of a product or service.
What is the comparative advantage in trade?
What is The ability of a country to produce a good or service at a lower opportunity cost than other countries.
Which type of economic system involves the government making most economic decisions, including production and distribution?
What is Command economy.
What is a price ceiling?
What is A maximum price set by the government, usually to keep essential goods affordable.
What is regulation in economics?
What is Rules set by the government to control business practices, often to protect consumers or ensure fair competition.
In which market structure do many firms sell similar but not identical products?
What is Monopolistic competition.
What is a tariff?
What is A tax on imported goods.
What is the key feature of a traditional economy?
What is Economic decisions are based on customs, traditions, and beliefs.
What is the equilibrium price in a market?
What is The price at which the quantity supplied equals the quantity demanded.
How do tariffs affect supply and demand?
What is Tariffs increase the price of imported goods, reducing demand for those goods and encouraging consumers to buy domestically produced goods.
What is the main feature of an oligopoly?
What is A market structure in which a few large firms dominate the market and have significant control over prices.
How do quotas impact international trade?
What is Quotas limit the amount of a specific good that can be imported, reducing supply and potentially raising prices.
What is a mixed economic system?
What is A system that combines aspects of both market and command economies, where both the government and individuals make decisions.
How does a shift in consumer preferences impact supply and demand?
What is A shift in consumer preferences can increase demand for a product, potentially raising prices and influencing suppliers to increase production.
What is monopoly regulation?
What is Government measures to prevent a single company from dominating the market and reducing competition.
What is a barrier to entry in a monopoly?
What is Any factor that prevents new firms from entering a market, such as high startup costs or control over key resources.
What is the purpose of free trade agreements like NAFTA?
What is To reduce trade barriers, such as tariffs and quotas, between countries to encourage international trade.