Allocatin Flashcards
What is allocation
efficient divding,identifying how scarce resources are to fe portioned
4 econ dystems
traditional, command, market
No central control
Traditional
Decisions are based on social cultural system
No additional
Trading system is direct through barter
Traditional
What are the disadvantages of barter?
Disadvantages it’s hard to determine the value and you need the double coincidence ofwants
Stability and continuity are favored over innovation and change 
Traditional
There is no concept of private property
Traditional
Centralized decision making
Command
Advantage of the command system
produces rapid changes
Individuality, innovation and variety are lacking
Command
Who uses command
Ancient, civilizations and communist 
For the following questions answer if it is socialism or communism
The central government owns and decides goods
Socialism
There is no government everything is on collectively
Communism
What distribution system does Socialism do? 
All contribute as much as they can, and then distributed evenly
What distribution does communism do?
Contribute as much and then get back according to need
Which of the following accepts religions and which denies religions 
Socialism accepts while communism, Rejects
No centralize decision making
Market
Individuals have their own free will ask buyer and sellers
Market
The people only decide the economic activities for own self interest
Market
Divides people in the classes
Capitalism
What classes does capitalism divide into
Capitalist and working class
Which of the following types of systems has the doctrine of hands off?
Market
What is something similar to capitalism?
The market economy, withs minimal government
Specialization, division of labor, expansion
Capitalism
Pure altruism is possible in economics, because people are caring
Falls
Who said it’s OK to be selfish
Adam Smith
Who said it’s not OK to be selfish
Karl Marx
