Economic Systems and Daily Life

Questions and Answers

When compared to a mixed-market economy, a command economy typically has?

More government control over production (correct)

No government control over production

Less government control over production

Equal government control as in a mixed-market economy

What might critics of the wealth gap argue?

Economic growth will likely decline over time

In a mixed market economy, property owned by an individual can help promote?

Personal wealth

Based on the graph, what can be concluded about the economy between 1991 and 2008?

The economy was getting stronger because unemployment was low Signup and view all the answers

Gabriela owns a company that makes silk scarves and buys silk from an overseas supplier. Where does she most likely live?

A mixed market economy with some government regulation Signup and view all the answers

What is a wealth gap?

An economic difference between economic classes Signup and view all the answers

Based on the graph, how much wealth did the top 20 percent of the population hold?

About 90 percent Signup and view all the answers

In a mixed market economy, property owned by the government can be used by?

Many citizens Signup and view all the answers

What is private property?

Land or goods owned by an individual Signup and view all the answers

How does a high unemployment rate affect the economy?

A high unemployment rate has a very negative effect Signup and view all the answers

Study Notes

Economic Systems Overview

Command Economy: Features significant government control over production compared to mixed-market economies.
Mixed Market Economy: Combines private ownership with some government regulation, enabling individual property to foster personal wealth.

Wealth Gap and Economic Growth

Critique of Wealth Gap: Critics argue that a growing wealth gap can lead to a decline in economic growth over time.
Economic Classes: The wealth gap refers to the economic disparity between different classes in society.

Employment and Economic Strength

Economic Indicators: The period between 1991 and 2008 showed economic strength due to low unemployment rates.
Impact of Unemployment: High unemployment rates are detrimental to the overall economy, negatively affecting growth and stability.

Property Ownership

Private Property: Private property includes land or goods owned by individuals, contributing to personal wealth.
Government Property: In a mixed market economy, property owned by the government can benefit many citizens through shared access.

Wealth Distribution

Top Wealth Holdings: The top 20 percent of the population held approximately 90 percent of the total wealth, indicating significant inequality in wealth distribution.

Real-World Example

Gabriela’s Business: Gabriela operates a silk scarf company in a mixed market economy, buys silk from overseas, and is subject to import taxes, showcasing the blend of private enterprise and government regulation.

Description

Explore the fundamental concepts of economic systems through flashcards that focus on command and mixed-market economies. Understand the implications of government control, the wealth gap, and the effects of property ownership. Perfect for anyone looking to deepen their knowledge of economics in daily life.