chapter 1 eco Flashcards
(12 cards)
what is a capitalist economy????
RUNNED BY PRIVATE INDUSTRIES MORE
what is a socialist economy????
RUNNED BY GOVERNMENT MORE
what is a mixed economy????
RUNNED BY BOTH PRIVATE AND GOVERNMENT
WHAT IS LAZZER-FAIREE/ FREE MARKET ECONOMY
“Laissez-faire” is a French phrase meaning “let do” or “let it be.”
In economics, it refers to a system with minimal government interference in the economy.
A free market economy is an economic system where prices, wages, and production are determined by supply and demand, not by the government
Laissez-faire is the philosophy (minimal government).
Free market economy is the system (based on supply and demand).
A laissez-faire economy is an extreme form of a free market.
CAPITALIST ECONOMY USES
PRICE MECHANISIM( LET THE PRICE DO EVERYTHING BY ITS OWN)
SOCIALIST ECONOMY USES
CENTRAL PLANNING
MIXED USES
BOTH PRICE MECHANISIM AND CENTRAL PLANNING
what is normative science
A JUDGEMENT OR A SUGGESTION
BUSINESS ECONOMICS IS MOSTLY CONCECNED WITH???
MICRO ECONOMICS
what does pragmatic means???
dealing with things in a sensible manner
EXAM MCQ
Positive Economics: “What is” — facts based.
Normative Economics: “What ought to be” — opinion based.
POSITIVE
NORMATIVE
1) FACTS
2) JUDGEMENTAL/ OPINION BASED
