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Economic Systems
Goals
Factors of Production
Features of Free Enterprise
Choices
100

This system relies on habit, custom, or ritual to decide questions of production and consumption of goods & services.

What is Traditional Economy?

100
This Goal involves making the best possible use of scarce resources
What is Economic Efficiency?
100

The raw materials that are turned into finished goods come from this factor.

What is land?

100

The impulse that encourages people to fulfill their own needs and wants. Adam Smith's metaphor states the invisible hand is guided by this.

What is Self-interest?

100
Something that encourages you to behave in a certain way.
What is Incentive
200

system in which decisions on production & consumption of goods & services are based on supply (firms) and demand (consumers)

What is Free Market/Enterprise?

200
This Goal is reached when prices remain stable and the unemployment rate is as low as possible.
What is Economic Stability?
200

The final products and services purchased by individuals or households.

What are Consumer Goods?

200
Goods and resources owned by individuals or businesses
What is Private Property?
200
A limited amount of resources.
What is Scarcity?
300

This system combines elements of a Command/Centrally Planned and Free Market?enterprise economies.

What is a Mixed Economy?

300

Also called Economic Justice, this Goal is reached when all members of society are fairly compensated for their labor.

What is Economic Equity?

300

A building, machine, or tool that is used in the production of other goods.

What are Capital Goods?

300
The economic rivalry that exists between businesses selling the same product or service.
What is Competition?
300

All other options available to you that you did not choose when making a choice.

What are trade offs?

400

What are the 3 economic questions every economic system must answer? (MUST use produce and consume in answer)

What is WHAT will we produce, HOW will we produce, and WHO will consume?

400
This Goal can best be measured when the Standard of Living rises over a period of months.
What is Economic Growth?
400

The work put in by individuals who produce products for consumers is this factor.

What is labor?

400

A product or service that is both non-excludable (cannot prevent non-payers from using it) and non-rivalrous (one person's use does not reduce availability to others).

What is public good?

400
A graph showing all possible combinations of two goods or services that can be produced within a specific time period.
What is a Production Possibilities Curve?
500

How every economic system answers the 3 economic questions.

What is their goals and values?

500
This Goal is reached when workers and business owners are allowed to make their own decisions about what to produce, what jobs to take, and how to dispose of thier private property.
What is Economic Freedom?
500

The skills and knowledge needed to complete a task is this factor.

What is human capital?

500

This economic goal and value is the most important in a free enterprise/market system. 

What is Freedom?

500
The next best possible alternative given up when a choice is made.
What is Opportunity Cost?