1-3 Economic Systems Flashcards
What are the 3 economic questions?
- What goods and services will be produced?
- How will the goods and services be produced?
- What needs and wants will be satisfied with the goods and services produced?
What are the 4 types of economic systems?
Command, market, traditional, and mixed economies.
Command economy
The resources are owned and controlled by the government.
Market economy
The resources are owned and controlled by the people of the country.
Traditional economy
Goods are produced the way they have always been produced, generation after generation.
Mixed economy
Combines elements of the command and market economy.
Capitalism
The private ownership of economic resources by individuals, rather than by the government.
What are other names for the U.S economy?
Capitalism, free enterprise, private enterprise.
What are the 4 basic principles of the U.S economy?
Private property, freedom of choice, profit, and competition.
Private property
It means that you can own, use, or dispose of things of value.
Freedom of choice
You can make economic decisions independently and must accept the consequences of those decisions.
Profit
The money left from sales after all of the cost of operating a business have been paid.
Competition
The rivalry among businesses to sell their goods and services.
