Economic Impacts
People who buy things.
What are consumers?
A basic economic system where customs and traditions are the elements that determine the way trade and commerce are performed.
What is a Traditional Economy?
Developed the economic theory stating that markets tend to work best when the government leaves them alone.
Who is Adam Smith?
Government owns major Factors of Production (FOP), but private ownership still exists.
What is Socialism?
The study of how people seek to satisfy their needs and wants by making choices.
What is Economics?
Those who make things to satisfy people’s needs.
What are producers?
An economic system in which activity is controlled by a central authority and the means of production are publicly owned.
What is a Command Economy?
Co-wrote "The Communist Manifesto".
Who is Karl Marx?
Private ownership of the FOPs and the use of markets to determine production.
What is Capitalism?
The study of individuals, companies & households.
What is Microeconomics?
Any skills or knowledge gained by a worker through education and experience
What is Human Capital?
A market system of resource allocation, commerce, and trade in which free markets coexist with government intervention.
What is a Mixed Economy?
Wrote "Wealth of Nations" in 1776.
Who is Adam Smith?
Centrally planned economy with almost all economic and political power in the hands of the government.
What is Communism?
The study of entire countries.
What is Macroeconomics?
Any human-made resource that is used to create other goods and services.
What is Physical Capital?
Economic decisions are made by individuals & are based on exchange, or trade.
What is a Pure Market Economy (aka Free Market)?
Believed Capitalism would divided society into 2 classes and would inevitably develop into Communism.
Who is Karl Marx?
A centrally planned economy where the central government alone decides how to answer the 3 economic questions.
What is a Pure Command Economy?
The most desirable alternative given up as the result of a decision
What is Opportunity Cost?
This asks what will be produced, how will it be produced and who should receive what is produced (goods and services).
What are the 3 Basic Economic questions?
Limited quantities of resources to meet unlimited wants.
What is Scarcity?