Economic systems
system involving people trading goods and services they decide to produce for goods and services they need.
Traditional economies
This term is defined as the study of how people's needs and wants are taken care of by their own efforts to earn a living. It is also the study of how countries use resources to provide goods and services.
Economics
True or False: When Mr. Pastorelli trades Mr. Sampson Bruins tickets for 2 dozen eggs, this is an example of market economics
False
You go to the store in the middle of winter to buy a surfboard. The price will be what?
Cheap
The prices of goods like bread, eggs, gas etc. increases. The term for this is what?
Inflation
economic system closely associated with communism. A centralized government owns all the resources for production of goods and services. The government determines what to produce, how it is produced, prices, and means of distribution. Consumers have limited choices.
Command economies
In this system, the individual can make many choices, whether deciding what to buy or what type of job to look for.
Free Enterprise system
True or False:Rich goes to the supermarket looking for breakfast cereal. His options are cheerios and captain crunch. The prices do not really change from store to store. This is an example of Command economics.
True
You buy a snowtube in the middle of winter, right after a snowstorm. The price of the snowtube will be what?
Expensive.
Economic system where consumers and business owners control the production and distribution of goods and services. Consumers have many choices but fewer price controls. Most closely associated with capitalism.
Market Economies.
Term that means there is not enough of a particular resource to satisfy the wants and needs of the people.
Scarcity.
You want to buy a Lebron James rookie card. There are only 20 in the whole world. The price to purchase a card will be what?
Expensive.
This economic system involves a mixture of individually-owned businesses and government-owned businesses determines what to produce, how it is produced, how much to charge, and means of distribution. The United States uses this type of system.
Mixed economies
Nokia is one of the first companies to make cell phones and charges high prices because they dont have much competition. Companies like Samsung and us cellular start selling phones at more reasonable prices. What will happen to Nokia prices?
They will decrease.
Name 2 countries that use a command economy.
North Korea, Cuba.