Economies 1
What type of economy does North Korea have?
Command Economy
What is an disadvantage of a traditional economy?
Tends to discourage new ideas and ways of doing things.
The transfer of a major branch of industry or commerce from the private sector to state/government control.
Nationalization
Tax or duty to be paid on particular imported goods.
Tariffs
What is an disadvantage of a market economy?
High degree of uncertainty
The economy does not always provide for everyone
What economic system do many Indigenous peoples have?
Traditional Economy
International trade left to its natural course without tariffs, quotas, or other restrictions.
Free Trade
What economic system has both market tendencies and government involvement?
Mixed Economies
In which economic system does the government or central authority answer: WHAT, HOW, and FOR WHOM to Produce?
Command Economy
What is an advantage of a market economy?
- Lots of individual choice
- Little government interference
- High efficiency
Movement toward a more integrated and interdependent world economy.
Globalization
What is an advantage of a traditional economy?
Everyone knows their role.
Economic system in which the government owns some factors of production and has a role in determining what and how goods are produced.
Socialism
The system in which private citizens own and use the factors of production in order to generate profits.
Capitalism
If you had to describe the United States of America using one of the 3 main economic systems (not mixed) which is most fitting?
Market Economy
Economic system in which supply, demand, and the price system help people allocate resources and decide WHAT, HOW, and FOR WHOM to produce.
Market Economy
What is protectionism?
Government policies that restrict international trade to help domestic industries.
Mixed economies are most common because?
Because different countries have tried to balance the different benefits of each of the three economic systems.