Podcast
Questions and Answers
In a purely ______ economy, there is no government control.
In a purely ______ economy, there is no government control.
market
Government controls production in a ______ economy.
Government controls production in a ______ economy.
command
______ ownership is a primary feature of a market economy.
______ ownership is a primary feature of a market economy.
Private
The government owning land and resources is a characteristic feature of a ______ economy.
The government owning land and resources is a characteristic feature of a ______ economy.
A ______ economy includes qualities from both command and market economies, blending private ownership with public services.
A ______ economy includes qualities from both command and market economies, blending private ownership with public services.
An economic system determines how a society uses its ______.
An economic system determines how a society uses its ______.
Economic systems answer three key questions, including 'What to produce?', 'How to produce?', and 'For ______ to produce?'
Economic systems answer three key questions, including 'What to produce?', 'How to produce?', and 'For ______ to produce?'
In a traditional economy, resources are allocated based on ______ and customs.
In a traditional economy, resources are allocated based on ______ and customs.
A major disadvantage of a traditional economy is limited room for growth and ______.
A major disadvantage of a traditional economy is limited room for growth and ______.
In a command economy, all land and resources are controlled by the ______.
In a command economy, all land and resources are controlled by the ______.
A significant drawback of command economies is that consumers typically do not have an ______ in production decisions.
A significant drawback of command economies is that consumers typically do not have an ______ in production decisions.
In a market economy, ______ and demand determine production and price levels.
In a market economy, ______ and demand determine production and price levels.
A notable disadvantage of market economies is that everyone's basic needs are not always ______.
A notable disadvantage of market economies is that everyone's basic needs are not always ______.
Flashcards
Market Economy
Market Economy
An economy with no government control where private individuals own resources.
Command Economy
Command Economy
An economy where the government controls production and owns land/resources.
Mixed Economy
Mixed Economy
Economy mixing market and command characteristics; private ownership with government oversight.
Price Determination (Mixed Economy)
Price Determination (Mixed Economy)
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Government Intervention (Mixed Economy)
Government Intervention (Mixed Economy)
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Economic System
Economic System
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Three Fundamental Economic Questions
Three Fundamental Economic Questions
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Traditional Economy
Traditional Economy
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Pros of a Traditional Economy
Pros of a Traditional Economy
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Cons of a Traditional Economy
Cons of a Traditional Economy
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Pros of a Command Economy
Pros of a Command Economy
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Cons of a Command Economy
Cons of a Command Economy
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Study Notes
- An economic system determines how a society uses its resources and provides goods and services.
- It allows a society to make money based on its traditions and values.
- Economic Systems exist to answer three fundamental questions:
- What to produce?
- How to produce?
- For whom to produce?
Four Types of Economic Systems:
- Traditional
- Command
- Market
- Mixed
Traditional Economy
- Based on tradition and customs.
- It focuses on agriculture and is often found in rural areas of developing countries.
- Goods are made based on the needs of the community.
- Pros:
- There is no competition between producers.
- The system is easy to understand.
- Few resources are wasted.
- Cons:
- There isn't much room for growth and development.
- Limited technology is used.
- There is no surplus of resources.
Command Economy
- All land and resources are controlled by the government.
- The government decides what is produced and sets the price of goods and services.
- The needs of society are more important than individual needs.
- Pros:
- Low unemployment
- Everyone's basic needs are met.
- Very few social classes
- Cons:
- There is no incentive to work hard.
- Consumers do not have any input.
Market Economy
- There is no government control.
- People can own private property.
- Businesses are created and run by citizens.
- Supply and demand determines production and price.
- Supply is how much of a product is available and demand is how much of a product is needed or wanted.
- Pros:
- There is a variety of goods and services.
- Consumers can buy whatever they want.
- It involves technology and innovations.
- Cons:
- Everyone's basic needs are not met.
- Wealth is not equal.
Mixed Economy
- Mixed economies include qualities of command and market economies.
- Businesses are privately owned.
- Public services are controlled by the government.
- Supply and demand determines the price of goods and services.
- The government intervenes to keep things fair.
- Pros:
- Employment, education, and health care are provided by the government.
- Consumers can buy whatever they want.
- Cons:
- High taxes are needed to provide public services.
- Less effective than a market economy.
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