Economic Systems
The way in which a society decides how to use its resources to produce and distribute goods and services
What is an economic system
The actions of buying and selling.
What is a market
This is a system in which individuals/businesses decide what, how, and how much will be produced/sold
What is capitalism
When T-Shirt makers produce a shirt, the cotton they use as part of the shirt is what part of the factors of production?
What is land.
This is the father of capitalism
Who is Adam Smith
This is a system in which decisions are based on customs. (Amish)
What is a Traditional-Based Economy
Another term for a capitalist system is:
What is market
These are people who create goods and services
Who are producers
Adam Smith’s “invisible hand” refers to the role of what?
self interest
The word equity means:
What is fairness
This is a system in which a central agency owns/controls and decides what goods a country will produce. (North Korea, Cuba, and Former USSR)
What is a Command Economic System
The concept of _______ allows people to buy and own land, a home, or their own business
What is private property
This is the amount of money asked for/paid for a good/service
What is price
Economics is primarily concerned with
What is the choices made in our use of resources
In a capitalist system, most property is:
What is privately owned
individual people and businesses decide what, how, and how much they will produce and how the products will be distributed.
What is a Market Economic System
It's easiest to start your own business in this type of system.
What is market or free enterprise system
This is when a business' income is less than its cost
What is a loss
These are the 3 questions that economic systems answer.
What is
What to produce?
How to produce it?
For whom should it be produced?
A major characteristic of a pure market economy is:
What is unrestricted competition
This has some features from traditional, command, and market economic systems. (USA and most other countries)
What is a Mixed Economic System
This system has no incentive to produce better products or engage in entrepreneurship.
What is command
This is property owned by a business or individual
What is private property
This is the availability of of natural, human, and capital resources
What is limited resources
What are North Korea and Cuba