Podcast
Podcast
Podcast
Something went wrong
Questions and Answers
Questions and Answers
What is an economic system?
What is an economic system?
- Providing needs and wants for a society in an organized way (correct)
- A system for organizing government functions
- A method for conducting scientific research
- None of the above
What defines a traditional economy?
What defines a traditional economy?
An economic system that relies on habit, custom, or ritual to decide questions of production and consumption.
What characterizes a command economy?
What characterizes a command economy?
A central authority makes major decisions about production and consumption.
What is a market economy?
What is a market economy?
Define a market.
Define a market.
What is capitalism?
What is capitalism?
What is a mixed economy?
What is a mixed economy?
Define socialism.
Define socialism.
What is communism?
What is communism?
What does minimum wage refer to?
What does minimum wage refer to?
What is social security?
What is social security?
Define inflation.
Define inflation.
What is fixed income?
What is fixed income?
What is free enterprise?
What is free enterprise?
What does voluntary exchange mean?
What does voluntary exchange mean?
Define private property rights.
Define private property rights.
What is profit?
What is profit?
What is the profit motive?
What is the profit motive?
Define competition in the market.
Define competition in the market.
What is consumer sovereignty?
What is consumer sovereignty?
What is a mixed free enterprise economy?
What is a mixed free enterprise economy?
Questions and Answers
Something went wrong
Flashcards
Flashcards are hidden until you start studying
Flashcards
Something went wrong
Study Notes
Study Notes
Economic Systems Overview
- An economic system organizes how a society meets its needs and wants efficiently.
- Traditional economy relies on customs and habits to guide production and consumption decisions.
- In a command economy, a central authority dictates major economic decisions, including what, how, and for whom to produce goods and services.
- A market economy utilizes supply, demand, and pricing mechanisms to facilitate economic choices among individuals.
Key Economic Concepts
- A market is where buyers and sellers interact to exchange goods and services.
- Capitalism emphasizes private ownership of production factors, aiming for profit through individual enterprise.
- A mixed economy blends elements of traditional, command, and market systems for a balanced approach.
- Socialism entails government ownership and control over the means of production, impacting economic and political spheres.
- Communism features state control over production resources, focusing on collective ownership and management.
Financial Terminology
- Minimum wage establishes the lowest hourly pay workers can legally receive.
- Social Security is a federal program providing benefits to retired and disabled individuals, funded by the workforce.
- Inflation describes the overall rise in prices of goods and services, decreasing purchasing power.
- A fixed income does not increase despite rising prices, which can affect financial stability.
Economic Principles
- Free enterprise allows for minimal government interference, fostering competition among businesses.
- Voluntary exchange occurs when buyers and sellers willingly participate in market transactions, promoting economic activity.
- Private property rights empower individuals to own, control, and utilize possessions as they choose.
- Profit is realized when financial gains exceed initial investment or costs.
- The profit motive incentivizes individuals and organizations to enhance their financial well-being.
- Competition drives sellers to innovate and attract consumers, benefiting the market.
- Consumer sovereignty emphasizes the influence consumers have in determining production priorities.
Mixed Free Enterprise Economy
- A mixed free enterprise economy combines individual economic freedom with certain government regulations to ensure societal needs are met while maintaining a competitive market environment.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Study Notes
Something went wrong
