Economic Systems
In this type of economic system, decisions are based off of past generations.
What is a Traditional Economy?
These are items that are meant to last for more than 3 years.
What is a durable good?
Who is Adam Smith?
The voluntary exchange of goods and services.
What is trade?
Competition drive price ______ and quality _____
What is down and up?
Citizens in this economic system have little to no economic freedoms.
What is communism?
Goods that we purchase often and use on a regular basis. Example: Food
What is a staple good?
Having the resources readily available to produce a good.
What is Absolute Advantage?
A limit placed on imports.
What is a quota?
As price increases the amount demanded decreases.
What is the Law of demand?
What is a market economy?
A good that is used to produce other goods.
What is a capital good?
What you give up to obtain something else
What is opportunity cost?
A tax placed on an import.
What is a tariff?
A surplus of an item would most likely cause prices to increase or decrease
What is decrease?
This type of economic system is run by a dictator.
What is a command economy?
Something tangible that has value.
What is a good?
This is a shortage of something. Example: toilet paper during Covid
What is scarcity?
A ban on trade
What is Embargo?
The number of sellers that are willing and able to produce goods and services.
What is Supply?
An economic system that combines aspects of both capitalism and socialism.
What is a mixed economy?
What is a service?
When you choose to produce the goods that you have the resources to produce and trade for all other goods.
What is the Specialization?
When the government imposes tariffs, embargos, and quotas to protect the US economy.
What is Protectionism?
The number of people that are willing to buy a specific item and a specific price?
What is demand?