Question | Answer |
traditional economy | centered around family, passed from generation to generation, resistant to change, work for group-not individual |
command economy | no incentives to work, government has complete control, decides: how, what, to whom to produce |
market economy | indivuals decied how, what, to whom to produce, government has no say, private ownership, total freedom |
market | free exchange of goods and services, how to produce, where to sell it, where to buy it |
self-interest | biggest bang for the buck, Adam Smith-people fulfill their own needs, government not involved |
incentive | positive & negative, encourage you to act in a certain way |
mixed economy | combo of elements, classified according to degree |
Authoritarian socialism | government control major industry, some rights, closest to pure command economy, |
communism | command economy, Soviet Union, complete government control, says how, what, for whom |
capitalim | closest to a market economy, capitalism + govt regulation= free enterprise, |
democratic socialism | mixed economy-combo of command and market, govt controls key industries, people choose elected officials that make decisions |
free enterprise | business conducted "freely" with little govt intervention |
private property | goods are owned by individuals and bussiness, clothes=consumer goods, office building supplies = captial goods |
contracts | cant be forced, agreement of terms, )oral, written, legal binding, |
competition | choices betwn 2 or more similar items, "economic rivalry" is good, more choices, competting for your money |
voluntary exchange | i will work for you in exchange for a pay check, beneficial transfer of products/services btwn consumers and producers |
product market | how you will market/sell your goods and services |
resource market | how will you get the money you need to start a business and pay workers |
income | money payments that houselholds receive from businesses and govt |
full employment | want people to be working, the lowest level possible of unemployment |
price stability | overall prices remain relatively constant |
standard of living | people's well-being as determined by the quantity of goods and services they consume |
role of government in the economy | regulates the economy, taxation, spending policies, health and safety standards |
market flow | keep money moving to keep economy flowing |
economic priorities/ indiviual | short term goal, change with changing times, who you want now! have to do right now! |
economic priorities/ government | short term goal, change with changing times, what you want now! stimulus package |