Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
33 Cards in this Set
- Front
- Back
- 3rd side (hint)
The method used by a society to produce and distribute goods and services.
|
Economic System
|
A society's ________ ________ is determined by its goals and values.
|
|
Relies on habit, custom,or ritual to decide questions of production and consumption of goods and services.
|
Traditional System/Economy
|
Ex. The Amish, Quakers, African Tribesmen use custom, ritual, & habit to decide the 3 Economic Questions.
|
|
Decisions on production and consumption of goods and services are based on voluntary exchange in markets.
|
Market System/Economy
|
The U.S.A. has a Mixed-Market Economy based on exchange/trade and called Free Market or Capitalism.
|
|
The Central Government makes all decisions on the production and consumption of goods and services
|
Command/Centrally-Planned System/Economy
|
The Central Government owns all Factors of Production
|
|
Market-based economic systems in which government plays a limited role (U.S.A.) or a major role (China)
|
Mixed System/Economy
|
The U.S is a Mixed-Market
China is a Mixed-Command Economy/System |
|
The financial gain made in a transaction.
|
Profit
|
Profit is made by buying stocks at cheap shares and selling them at high shares
|
|
The ultimate user of a commodity/good.
|
Consumer
|
The purchaser of a good/service.
|
|
The level of Economic prosperity one has
|
Standard of Living
|
Raised by Innovation, Technology and Training
|
|
The love of one's country; the passion that inspires a person to serve his/her country
|
Patriotism
|
Shown by military service, protection of its rights & maintaining its laws and institutions
|
|
An arrangement that allows buyers and sellers to exchange things
|
Market
|
A Farmer's Market allows for the exchange of produce for consumer's money
|
|
An organization that uses resources to produce a product, which it then sells.
|
Firm
|
______transform "inputs" or factors of production into "outputs" or products.
|
|
A person/group of people living in the same residence
|
Household
|
_________ own the Factors of Production: land, labor & capital and are the consumers of goods and services.
|
|
The market in which HHs purchase the goods and services that firms produce
|
Product Market
|
Goods & services that firms produce are purchased by HHs
|
|
Firms purchase the factors of production from Households: Land/Natural Resource, Labor: Workers paid wages/salaries for their work, and borrow money from households to purchase capital, paying HHs interest or profits in return
|
Factor Market
|
The lower half of the circular flow diagram. Land, Labor & Capital are purchased by Firms
|
|
Adam Smith, a Scottish Philosopher explained the Market Economy by laissez faire or "leave alone" as it will self-regulate w/o use of Gov't intervention
|
The Invisible Hand
|
Our Economy regulates itself by competition and self-interest. Land, Labor & Capital are Factors of Production that generate a nation's wealth.
|
|
Individual pursuit of what is best for him/her & making decisions that ultimately benefit the whole nation
|
Self-Interest
|
consumers purchase goods in their self-interest and sellers compete with one another for their business.
|
|
The struggle among producers for the dollars of consumers; the rivalry among sellers to attract customers while lowering costs
|
Competition
|
________ provides consumers with the choice of a larger variety of goods; mostly at reasonable prices.
|
|
The power of consumers to decide what gets produced.
|
Consumer Soverignty
|
Since producers have incentives to meet consumers' desires, the consumer therefore decides what gets produced.
|
|
An expectation that encourages people to behave in a certain way
|
Incentive
|
An ____________ may be cash back, extended warranty, free gas for a period of time, etc.
for purchasing a car. |
|
The doctrine that states that government generally should not intervene in the marketplace
|
Laissez Faire
|
Left to its own devices, the free market system is felt to provide the most benefit for consumers and raise the standard of living
|
|
Property owned by individuals or companies, not by the government or the people as a whole
|
Private Property
|
You cannot hunt on ______ ______ without the landowners permission.
|
|
An economic system characterized by private or corporate ownership of capital goods; investments that are determined by private decision rather than by state control; and determined in a free market
|
Free Enterprise
|
Also called Capitalism
|
|
A range with no clear divisions.
|
Continuum
|
Mixed economies have less clear divisions & overlap making them a ___________
|
|
Period of change in which an economy moves away from a centrally planned economy toward a market-based system.
|
Transition
|
Ex. the U.S.S.R. & China have become slowly westernized in a ________ from communism/socialism to more free enterprise with some privatisation of industry
|
|
To sell state-run firms to individuals
|
Privatize
|
Economic transition requires that governments give up control and _____________ industry
|
|
System in which the central government makes all decisions on the production &
consumption of goods & services |
Socialism
|
This system requires a high degree of central planning to achieve economic equality.
Ex. transition of U.S.S.R to Russia |
|
A Centrally-planned/Command economy with all economic and political power resting in the hands of the Central Government.
|
Communism
|
Cuba, North Korea, and China have __________ governments
|
|
Requiring strict obedience to an authority, such as a dictator.
|
Authoritarian
|
Disallowing individual freedoms to its citizens
|
|
A large farm leased from the
state to groups of peasant farmers |
Collective
|
Farmers recieved a share or a cash from the sale of produce
|
|
Industry requiring a large capital investment and produces items used in other industries.
|
Heavy Industry
|
Joseph Stalin created his 5-year plans to produce ________
_________ in the U.S.S.R. |
|
The concentration of the productive efforts of individuals and firms on a limited number of activites
|
Specialization
|
Assembly-line production requires much specialization
|
|
The income people recieve from supplying factors of production; land, labor, capital, technology or entrepreneurship
|
Factor Payments
|
Ex. landowners recieve rent, workers recieve wages those who lend money, buy machinery or build factories receive interest psyments.
|
|
Government programs that protect people expeienceing unfavorable working conditions
|
Safety Net
|
Ex. Injured workers recieve Workmans Comprehensive insurance, layoffs can get Unemployment Ins., those in Natural disasters can get FEMA, retired persons can get SSI payments, et. al.
|