Capitalism
In this economic system, individuals and businesses own most property and resources.
What is capitalism?
This four factors are these.
What are land, labor, capital, and entrepreneurship?
In this system, the government makes most economic decisions about production and prices.
What is command?
You choose to go to a movie instead of studying for a test.
What is higher grade?
This model shows how money, goods, services, and resources move through the economy.
What is circular flow model?
This right allows people to own land, homes, and businesses.
What is private property?
This factor of production includes natural resources like water, trees, and minerals.
What is land?
An economic system where supply and demand determine prices with little government involvement.
What is market?
A student works after school instead of playing sports.
What is playing sports?
These two main groups interact in the basic circular flow model.
What are households and businesses?
The freedom to start a business, choose a job, or buy and sell goods is known as this.
What is open opportunity?
The physical and mental effort workers use to produce goods and services.
What is labor?
An economic system where customs and traditions determine what is produced and how.
What is traditional?
A city uses money to build a new stadium instead of improving roads
What is better roads?
Households provide these to businesses in exchange for wages.
What are factors of productions/labor/entrepreneurship?
This encourages businesses and individuals to produce goods and services in order to earn money.
What is profit motive?
This factor involves taking risks and combining the other three factors to start a business.
What is entrepreneurship?
This has aspects of both command and market economies.
What is mixed?
You spend $50 on new shoes instead of saving the money
What is saved money/interest?
Businesses provide these to households in exchange for money.
What are goods and services?
In capitalism, prices are mainly determined by this interaction between buyers and sellers.
What is supply and demand?
Tools, machines, factories, and equipment used to make products fall under this factor.
What is capital?
In this economy, individuals decide what to produce and consumers “vote” with their dollars.
What is market?
A student chooses to take a nap after school instead of working extra hours at a job
What are money not made?
In the circular flow model, this flows from businesses to households as payment for work.
What are wages?