Mixed
What are disadvantages of a mixed economies?
Mixed economies with a strong sense of socialism tend to provide lots of social services through high taxation.
What are the two reasons for economic growth?
Scarcity and population
Why do markets exist?
Markets exist because none of us produce all the goods and services that we need.
What are market economies?
Economic decisions are made by the individuals and are based on exchange or trade.
What are the four categories that economic systems are categorized as?
Traditional Economies, Command Economies, Market Economies and Mixed Economies
Why is human capital so important?
Human capital is the sum of people's skills, abilities, health, knowledge and motivation.
What are disadvantages of a command economy?
Leaders of these economies become rich because they only care about themselves.
What are advantages of a traditional economy?
Everyone knows the role they play.
What is economic growth?
Economic growth occurs when a nation's total output of goods or services increases over time
Who was Adam Smith
The modern founder of economics.
What are mixed economies?
Political systems that govern how resources are distributed.
What are command economies?
The central government makes all decisions about the production and consumption of goods and services.
What is specialization?
When you are really good at making something better than other people
What are advantages of a market economy?
High degree of freedom. People are able to freely spend their money.
Why is competition important?
Competition promotes efficiency, helps reduce prices and improves quality.
What are advantages of mixed economies?
In the 70's China's economic growth was poor. They were able to mix in capitalism and now have one of the fastest growing economies.
What are advantages of having a command economy?
A major strength is that I can change directions drastically.
What are disadvantages of a traditional economy?
Tends to discourage new ideals and new ways of doing things.
What are disadvantages of a market economy?
Market economies don't provide for everyone. Rich get Richer and the Poor get Poorer
How does socialism work?
Government provides lots of social services through high levels of taxation.
Name one of the questions that every society must answer?
What goods and services should be produced?
How should these goods and services be produced?
Who consumes these goods and services?
Why capitalism?
Is the most powerful engine in terms of wealth building.
What are traditional economies?
Traditional economies rely on habit, custom, or ritual to decide what to produce, how to produce it and to whom to distribute it.
Who was Karl Marx?
The founder of Marxist economies like socialism and capitalism.
What is communism?
All production for factories, farms and stores are centrally planned.