Podcast
Questions and Answers
Which fundamental economic question is primarily addressed by the type of goods and services a society produces?
Which fundamental economic question is primarily addressed by the type of goods and services a society produces?
- When to produce?
- How to produce?
- What to produce? (correct)
- For whom to produce?
In a command economy, who primarily determines the allocation of resources?
In a command economy, who primarily determines the allocation of resources?
- Government entities (correct)
- Private corporations
- Individual consumers
- Market forces
What is a key characteristic that distinguishes a market economy from a command economy?
What is a key characteristic that distinguishes a market economy from a command economy?
- Price controls
- Equal income distribution
- Private property rights (correct)
- Centralized planning
In a mixed economy, how are resources typically allocated?
In a mixed economy, how are resources typically allocated?
Which of the following is the MOST likely characteristic of a command economy?
Which of the following is the MOST likely characteristic of a command economy?
What role does the government play in a market economy?
What role does the government play in a market economy?
What is 'state capitalism,' as described in the context of mixed economic systems?
What is 'state capitalism,' as described in the context of mixed economic systems?
How does the political climate potentially influence the economic system of a country, using the US as an example?
How does the political climate potentially influence the economic system of a country, using the US as an example?
Which of the following best describes Karl Marx's primary argument regarding economic systems?
Which of the following best describes Karl Marx's primary argument regarding economic systems?
Which historical event directly inspired the adoption of socialist/communist systems in several countries during the 20th century?
Which historical event directly inspired the adoption of socialist/communist systems in several countries during the 20th century?
By the 1970s, which geographic region least commonly featured centrally planned economies?
By the 1970s, which geographic region least commonly featured centrally planned economies?
How did Karl Marx's ideas contrast with those of Adam Smith?
How did Karl Marx's ideas contrast with those of Adam Smith?
Which of the following is a defining characteristic of a command economic system?
Which of the following is a defining characteristic of a command economic system?
Which of the following countries did not adopt a centrally planned economy in the 20th century, according to the text?
Which of the following countries did not adopt a centrally planned economy in the 20th century, according to the text?
What was the primary goal of implementing centrally planned economic systems in countries inspired by Karl Marx?
What was the primary goal of implementing centrally planned economic systems in countries inspired by Karl Marx?
What is the most likely reason the content warns about legal liability regarding the material presented?
What is the most likely reason the content warns about legal liability regarding the material presented?
Which of the following best describes what an economic system aims to do?
Which of the following best describes what an economic system aims to do?
In the context of economics, what is the primary implication of copyright protection for instructor-generated course materials?
In the context of economics, what is the primary implication of copyright protection for instructor-generated course materials?
Why is it important for students to understand the implications of copyright on course materials?
Why is it important for students to understand the implications of copyright on course materials?
What does an economic system primarily define for a country?
What does an economic system primarily define for a country?
What should a student do if they want to share course materials online that are copyright protected?
What should a student do if they want to share course materials online that are copyright protected?
Based on the information provided, what is the primary subject matter?
Based on the information provided, what is the primary subject matter?
Which activity would most likely constitute a violation of copyright related to course materials?
Which activity would most likely constitute a violation of copyright related to course materials?
What can be inferred about the intended audience of this material?
What can be inferred about the intended audience of this material?
Why do economic systems need to address the question of resource allocation?
Why do economic systems need to address the question of resource allocation?
What is the implication of the 'WARNING: LEGAL LIABILITY' notice on each page?
What is the implication of the 'WARNING: LEGAL LIABILITY' notice on each page?
If an instructor discovers that their copyrighted course materials have been posted on a public website without their permission, what recourse might they have?
If an instructor discovers that their copyrighted course materials have been posted on a public website without their permission, what recourse might they have?
What could be a potential consequence of disregarding the legal liability warning?
What could be a potential consequence of disregarding the legal liability warning?
If a student wants to use a figure from this content in their research paper, what should they do?
If a student wants to use a figure from this content in their research paper, what should they do?
Considering the context, what is the MOST likely reason for the prominent placement of the legal warning on each page?
Considering the context, what is the MOST likely reason for the prominent placement of the legal warning on each page?
How does the presence of the legal warning influence the way the information should be handled?
How does the presence of the legal warning influence the way the information should be handled?
What action would constitute a violation of the stated legal liability?
What action would constitute a violation of the stated legal liability?
What action regarding the content is explicitly prohibited without prior written consent?
What action regarding the content is explicitly prohibited without prior written consent?
Which entity requires written consent from Dr. John Saba before using the content?
Which entity requires written consent from Dr. John Saba before using the content?
If a student reproduces the content without permission for educational purposes, who is legally liable?
If a student reproduces the content without permission for educational purposes, who is legally liable?
Dr. John Saba's intellectual property rights extend to prevent:
Dr. John Saba's intellectual property rights extend to prevent:
What is the most appropriate action if an instructor at Champlain Regional College wants to use the content in their course?
What is the most appropriate action if an instructor at Champlain Regional College wants to use the content in their course?
Which statement best describes the legal protection afforded to the content?
Which statement best describes the legal protection afforded to the content?
Which of the following actions would MOST likely be considered a violation of Dr. John Saba's intellectual property rights?
Which of the following actions would MOST likely be considered a violation of Dr. John Saba's intellectual property rights?
An individual finds the content online without any copyright notice. What assumption should they make regarding its use?
An individual finds the content online without any copyright notice. What assumption should they make regarding its use?
In a mixed economy, what is one primary role governments play in regulating business?
In a mixed economy, what is one primary role governments play in regulating business?
What is the likely outcome of a government redistributing wealth through social programs and taxation?
What is the likely outcome of a government redistributing wealth through social programs and taxation?
Which action exemplifies government intervention aimed at correcting market failures?
Which action exemplifies government intervention aimed at correcting market failures?
What is a key government function in ensuring economic stability within a mixed economy?
What is a key government function in ensuring economic stability within a mixed economy?
How might government regulation of businesses impact innovation and market competition?
How might government regulation of businesses impact innovation and market competition?
If a government decides to increase taxes on high-income earners to fund social programs, what is a potential economic consequence?
If a government decides to increase taxes on high-income earners to fund social programs, what is a potential economic consequence?
What is the main goal of the government when providing public goods and services, such as infrastructure and education?
What is the main goal of the government when providing public goods and services, such as infrastructure and education?
In the context of a mixed economy, how does government intervention typically influence income inequality?
In the context of a mixed economy, how does government intervention typically influence income inequality?
Flashcards
Economic System
Economic System
The structure and processes a country uses to allocate its resources and conduct its commercial activities.
3 Key Economic Questions
3 Key Economic Questions
How resources are allocated, what goods and services are produced, and who gets them.
Command Economy
Command Economy
Economic system where the government makes most economic decisions.
Karl Marx
Karl Marx
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Many countries
Many countries
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Soviet Union
Soviet Union
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Central Planning
Central Planning
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China
China
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Cuba
Cuba
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Economic Development Level
Economic Development Level
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Modern Economic Systems
Modern Economic Systems
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Market Economy
Market Economy
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Mixed Economy
Mixed Economy
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State Capitalism
State Capitalism
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Characteristics of Modern Economic Systems
Characteristics of Modern Economic Systems
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Economic System Shifts
Economic System Shifts
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Extreme Poverty
Extreme Poverty
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Chronic hunger
Chronic hunger
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Under-nutrition
Under-nutrition
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Poverty
Poverty
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Absolute Poverty
Absolute Poverty
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Relative Poverty
Relative Poverty
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Food Insecurity
Food Insecurity
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Over-nutrition
Over-nutrition
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Government Regulation
Government Regulation
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Wealth Redistribution
Wealth Redistribution
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Correcting Market Failures
Correcting Market Failures
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Promoting Competition
Promoting Competition
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Providing Public Goods
Providing Public Goods
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Economic Stabilization
Economic Stabilization
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Income Redistribution
Income Redistribution
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Study Notes
- These notes provide an overview of economic systems and the role of government.
- The main topics are; defining economic systems, explaining the three key questions economic systems seek to answer, explaining various types of economic systems, and the six functions/goals of government in the Canadian mixed economy.
Economic System Definition
- An economic system refers to the structure and processes a country uses to allocate its resources and conduct its commercial activities.
Three Key Questions for Economic Systems
- Economic systems seek to answer three key questions.
- These include:
- What goods and services are produced and in what quantities (e.g., necessities like houses versus leisure items like LED televisions).
- How goods and services are produced, including the method of production used (e.g., using people or machines).
- Who consumes the goods and services produced, depending partially on people's incomes and the distribution of income.
Types of Economic Systems
- There are two main types of economic systems:
- Traditional
- Modern
- As well as 3 sub-types in modern
- Command
- Market
- Mixed
Traditional Economic Systems
- Custom and tradition from the past answers the questions of what, how, and for whom to produce.
- These are rural-agricultural-based economies with most workers producing food on farms.
- Feudal Europe is an example of traditional economic systems, but elements of this are still found in sub-Saharan Africa today.
Modern Economic Systems
- Generally urban-industrial and/or service-based economies where most workers live in cities producing manufactured goods and/or services.
- Modern economic systems share three common characteristics
- Skilled labor, much capital equipment, and an improving technology are commonly used to produce goods and services in modern economies.
- A division of labor and specialization of function (task) exists which permits increased productivity and production.
- Money, rather than barter, is used as a means of facilitating the exchange of goods and services.
Command Economic Systems
- A century after Adam Smith, Karl Marx (1818-1883) argued for Centrally Planned rather than free market economic systems to generate a more "just" distribution of output
- Developed mainly in the 1900's
- The government makes most economic decisions using collectivism, implements them in the 20th century by violent revolutions
- Governments own economic sector and state plans this
- Examples today are in Cuba, North Korea and transitioning in China
- Characteristics of Command Economic Systems
- The last few decades, countries have tended to adopt the free MARKET or MIXED economic systems.
- Government ownership of economic resources with state planning.
- The government makes most economic decisions.
- rooted in collectivism.
- This involved the government trying to do central planning but they failed with
- Economic failure cause bad quality and no options
- Lacked innovation to incentivise workers and maximize benefits
- Could not achieve growth in these countries
- Failed to satisfy basic consumer needs leading to mass transition world wide
Market Economic Systems
- Are "self organizing" led by Adam Smith
- Private Individual sector leads the economy, they are encouraged to innovate
- Self interest (not benevolence) if the key driver for competition in business
- An individual consumer and producer answer the three questions through the price mechanism in the free/open market. Characteristics
- Self-interest and the Profit Motive, are main market drivers
- There is limited government regulations
- Mostly Private (individual or business) ownership of economic resources
- Economic activities occur in the very large market, State usually control the infrastructure like roads
Mixed Economic Systems
- It includes the government providing general welfare programs
- It is a mixture of central control and market determination
- It encompasses the public and Private sectors
Government Goals in a Canadian Mixed Economy
- The government tries to promote economic growth by increasing Total Production/GDP & Productivity [production per worker]
- Economic indicator include development on global standards and global growth
- The Canadian government tries to fight unemployment.
- The Canadian Government TAXES citizens & Reallocates Resources from PRIVATE consumer good production to Collective (government funded infrastructure )
- Canadian economy is mainly made of individuals (who pay the most Taxes)
International Economy
- There are four type economies on the global Market
- Developed Countries are usually found in the 'North" and enjoy high economic growth. This includes the countries with very successful technology systems, such as Saudi Arabia.
- Economies in this catergory include, USA, European Union & Canada
- In these countries only 14% work
- 700+ million people
[9.2% of the world Populationiive on
less than .15 USD a day
defined by the international
community as constituting
extreme poverty
- The Global South are Developing, the countries here are lagging behind in the key pillars of growth. This has led to people being in poverty.
- Emerging Countries are economies are trending between developing and "north" levels of development
- Former Soviets Countries
China's economy
- China is world's factory (and consumer engine)
- Key economic driver: 10 years internal
Summary of Governments
- Government may intervene to "correct market failures".
- Governments have a substantial regulatory role.
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Description
Explore fundamental economic questions addressed by different economic systems. Cover command, market, and mixed economies, focusing on resource allocation and government roles. Includes Karl Marx's arguments and historical influences in shaping economic systems.
