| A | B |
|---|
| Describe what is a Market Economic System- role of government, characteristics, advantages, disavantages, examples of countries, and who determines what is going to be produced, how and who? | Economic system in which basic economic decisions are made by people and firms acting in their own best intersts |
| What is a Command Economic System- role of government, characteristics, advantages, disavantages, examples of countries, and who determines what is going to be produced, how and who? | Economic System in which basic economic decisions are made by a central authority |
| What is a Traditional Economic System- role of government, characteristics, advantages, disavantages, examples of countries, and who determines what is going to be produced, how and who? | Economic System in which basic economic activity stems from ritual, habit, or custom |
| What is the true type of system that the United States has? | American economy is called free enterpirse |
| Define Voluntary exhange | that buyers and sellers do business freely, or only if they want to. |
| Define Profit motive | The driving force that encourages people and organizations to improve their material well being |
| Define Fixed Income | An income that does not increase even though prices go up |
| Define Capitalism | a competitive economic system in which people own the factors of production. |
| Define free enterprise | economy in which competition is allowed to flourish with a minimum of government interference: term used to describe the American economy. |
| Define socialism | economic system in which government owns some factors of production and has a role in determining what and how goods are produced |
| Define communism | economic and political system in which factors of production are collectively owned and directed by the state: theoretically classless society in which everyone works for the common good.- |
| Define profit | extent to which persons or organizations are better off- financially or in other ways- after a business deal than they were in the beginning. |
| Define private property rights | allow people to own and control and their belongings and abilities. Ex. people decide to sell their cars |
| Define competition | struggle among sellers to attract consumers by lowering costs. |
| Define Consumer Sovereignity | role of consumer as ruler of the market when determining the types of goods and services produced. |
| Define Mixed Economy | Economy in which free economic activity is subject to some government intervention and regulation |
| Define Modifed private enterprise economy | free enterprise market economy where people carry on their economic affairs freely, but are subject to some government involvement: same as modifed private enterprise economy. |
| Disadvantages of Communism | disadvantage- individual freedom is lost, no incentive to work hard, fails to meet wants and needs of consumers, centralized planning is inefficient and lacks flexibility. |
| Advantages of Communism | Advantages- equality, public goods, lack of uncertanity, economy to shift direction quickly, |
| Advantages of Capitalism | Efficiency, freedom, consumer satisfaction |
| Disadvantages of Capitalism | production of public goods, produces only for those who have demand |
| Pure Capitalism tend to ignore | lower class, poor, unemployed |
