| Question |
Answer |
| What is a command economy? |
An economy where the government makes all economic decisions. |
| What is a market (capitalism) economy? |
An economy where most economic decisions are made by buyers and sellers. |
| What is a traditional economy? |
An economy based on tradition and customs. |
| What kind of economy does the USA have? |
Market |
| What kind of economy does North Korea have? |
Command |
| What kind of economy would you find in a tribal area? |
Traditional |
| What is profit? |
The difference between revenue from sale of a good or service and cost of providing it. |
| What are consumers? |
buyers and sellers |
| What is an entrepreneur? |
The person who accepts the risk of starting, organizing, and operating a business. |
| What are the four factors of production? |
Human Resources, natural resources, capital resources, and entrepreneurship |
| What Scottish economist popularized the ideas about a free market system? |
Adam Smith |
| What does economic freedom mean? |
People are free to make economic choices, such as choosing a job, owning property, and/or making a profit. |
| What does economic growth lead to? |
A higher standard of living. |
| What does economic stability mean? |
That prices do not rise or fall a great deal. |
| What does economic equity mean? |
That everyone has access to the same economic opportunities. |
| What is economic security? |
That you have a stable income so that you can live comfortably now and in the future. |
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