Economic Systems
What dictates a traditional economy?
Customs, Beliefs, Rituals
Who decides in a command economy?
Government
This allocation strategy allows rationing of a resource based on who can afford the price set by the market.
Price
What are public goods?
Education is what type of productive resource?
Human Capital
Who dictates a market economy?
Individuals and businesses
What makes a mixed economy different than the others?
It's a combination of market and command
This allocation strategy is based on what the majority of people want
Majority Rules
Why doe we have private property rights?
To protect our ideas, creations, products, etc. from being stolen by others
Productivity
What kind of economy do MOST countries have?
Mixed
Government regulation is associated with which economy/economies?
This allocation strategy can distribute the resource to the person who wins.
Contest
What are externalities?
Positive or negative effects caused by a third party
What is provided by the government and paid for by tax dollars?
Public Goods
What is an incentive for selling in a market economy?
Variety of products and services, easily open a business, no regulations by the government, easily make money
A country has the freedom to produce what the consumers want but their government regulates business. What type of economy is this?
This allocation strategy can be handled quickly and gives everyone who wants the resource equal odds of receiving it.
Lottery
What is government regulation?
Laws/rules implemented by the government in an economy/economic system
What is an example of a positive externality?
Building a new road
Vaccine development
What are the 3 economic questions?
What to produce?
How to produce?
For whom to produce?
How can an economy switch from market to command?
Add government regulation
This allocation strategy allows people to receive a resource if they are the first one in line for it.
First come, first served
What is an example of a negative externality?
People littering
Run off in a stream
Factories that release pollution
When a country invests heavily in physical capital and new technology, they experience __________
Economic Growth