Questions and Answers
When compared to a mixed-market economy, a command economy typically has?
What is the best definition of ownership?
Ownership is the right to possess land or goods.
A wealth gap is an economic difference between?
classes.
In a mixed market economy, property owned by an individual?
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What is one argument in favor of the wealth gap?
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From 2001 to 2011, unemployment in the United States?
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The difference in income between the richest and poorest citizens is called the?
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What is one argument against the wealth gap?
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Private property is land or goods?
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Based on this graph, how much wealth did the top 20 percent of the population hold?
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The act of working in exchange for an income is called?
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Gabriela owns a company that makes silk scarves. She buys the silk from an overseas supplier and is subject to a tax on imported goods. Gabriela most likely lives in?
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What is one possible effect of high unemployment in a mixed market economy?
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How can the government reduce the wealth gap in a mixed market economy?
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Based on this graph, what can be concluded about the economy between 1991 and 2008?
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Study Notes
Economic Systems
- A command economy has a smaller wealth gap compared to a mixed-market economy.
- Mixed-market economies allow individual property ownership, promoting personal wealth.
- Private property is defined as land or goods owned by an individual.
Wealth Gap
- The wealth gap refers to the economic difference between classes.
- The disparity in income between the richest and poorest citizens is termed the wealth gap.
Employment and Economic Impact
- Employment is defined as working in exchange for income.
- From 2001 to 2011, unemployment in the United States sharply increased, indicating economic challenges.
- High unemployment in a mixed market economy can lead to weakened buying power.
Arguments Regarding the Wealth Gap
- Proponents argue that investments by the upper class generate jobs for the lower class.
- Critics claim that a widening wealth gap can lead to declining economic growth over time.
- To address the wealth gap, governments can enhance education and provide opportunities for lower-class workers.
Economic Indicators
- Between 1991 and 2008, the economy strengthened as indicated by high employment statistics.
- The wealth held by the top 20% of the population is a significant factor in analyzing wealth distribution.
Real-World Example
- Gabriela, who owns a silk scarf company and faces import taxes, embodies the dynamics of a mixed market economy with government regulations.
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Description
Test your knowledge on economic systems and their influence on daily life with this informative quiz. Explore definitions of key concepts such as ownership and wealth gaps through engaging flashcards. Perfect for students or anyone looking to enhance their understanding of economics.
