Economic Systems Flashcards Preview

Economics - Mr. Bono (Semester 2) > Economic Systems > Flashcards

Flashcards in Economic Systems Deck (23):
1

What are the 2 types of economics in the world?

Microeconomics
Macroeconomics

2

What is the study of the individuals, families, and businesses in the economy?

Microeconomics

3

What is the study of the economy as a whole and is concerned with large-scale economic activity?

Macroeconomics

4

What studies economic behavior as it is?

Positive Economics

5

What involves judgements of what economic behavior ought to be?

Normative Economics

6

What is the way a society uses its scarce resources to satisfy its people's unlimited wants?

Economic System

7

What are the three basic types of economic systems?

Traditional Economics
Command Economics
Market Economics

8

What is an economic system in which families, clans, or tribes make economic decisions based on customs and beliefs that have been handed down from generation to generation?

Traditional Economy

9

The one goal of a traditional economy is what?

Survival

10

What is an economic system in which the government decides what goods and services will be produced, how they will be produced, and how they will be distributed?

Command Economy

11

What is an economic system based on individual choice not government directives?

Market Economy

12

In a market economy, who decides what good or services will be offered?

Producers

13

In a market economy, individuals act on what when they make economic choices?

Self-interest

14

No other economist has had as much influence as who?

Adam Smith

15

Smith was born where?

Scotland

16

Smith studied and later taught what?

Literature, Logic, and Moral Philosophy

17

What is a system by which a government of the homeland controlled trade with its colonies?

Mercantilism

18

A nation would be wealthier if it engaged in what?

Free Trade

19

A what guides the marketplace

Invisible hand

20

Traditional economies clearly answer what?

Three economic questions

21

What is determined by customs and traditions in traditional economies?

Systems of distribution

22

Traditional economies resist what?

Change

23

What is a system in which the society's leaders usually members of the central government make all economic decisions ?

Centrally Planned Economy