Key Economic Questions
These are the three economic questions a society must face (first words only)
What is "what, how, who?"
An arrangement that allows buyers and sellers to meet and exchange.
What is a "market?"
The group that answers the economic questions in a central economy.
What is "the government."
What is "laissez-faire."
A sale at your favorite clothing store is doing this to you.
What is "incentive/incentivizing."
This constantly changes how a society makes things.
What is "technology?"
In a free market, the three economic questions are answered by this idea.
What is "voluntary exchange."
This is absent in central markets, which leads to a lack of innovation.
What is "competition."
A family that owns a house has their rights protected by the government with this law.
A public park being bought out by a private company is an example of this.
What is "privatization."
Efficiency, freedom, security, and equity are examples of these.
What are "economic goals?"
A baker knowing how to bake a cake and a nurse knowing how to care for the sick is an example of this.
What is "specialization."
This economic philosophy believes that wealth should be evenly distributed throughout society.
What is "socialism."
Roads, schools, and other items that are funded through taxation.
What are "public goods?"
Needs that drive the market forward.
What are "self-interests."
The level of economic prosperity a society has.
What is "standard of living?"
Adam Smith's idea of how the free market drives itself forward.
What is the "invisible hand."
Essentially the opposite of Adam Smith, this person grandfathered in the idea of Communism.
Who is "Karl Marx."
The US economy is an example of this type of economy.
What is "mixed free, free mixed economy."
Starbucks creating their fall menu to compete against Dunkin is an example of this.
What is "innovation."
The income people receive for contributing to the market.
What are "factor payments?"
The arena of exchange in which firms purchase factors of production from workers.
What is the "factor market."
This country has undergone an economic transition from a pure command economy for the past 40 years.
What is "China."
This is the market the government buys things from in our economy.
What is the "product market."
Kim Jong Un is this type of leader.
What is an "authoritarian."