Economic system

Question 1

What is economics?

Answer 1

The study of now individual and groups new limited resources to fulfill unlimited wants and needs.

Question 2

What are wants?

Answer 2

What people would like to have

Question 3

What are needs?

Answer 3

They are essentials of survival.

Question 4

What are goods?

Answer 4

Products that people consume or use.

Question 5

What is service?

Answer 5

A human actitvity.

Question 6

What is scarcity?

Answer 6

The limited supply of something.

Question 7

What is something that no country has?

Answer 7

Enough resources to produce everything that people need/want?

Question 8

When developing an economic plan, each country must three economic questions, what are they?

Answer 8

1) What goods/services will be produced
2) How will goods/services be produced
3) Who will be consume the goods/services./

Question 9

All economic systems are mixtures of these three, what are they?

Answer 9

Traditional, command, and market.

Question 10

What are ALL economic choices based on?

Answer 10

Customs, traditions, beliefs on the past.

Question 11

What does barring mean?

Answer 11

Trading without money.

Question 12

What are the MAIN activities of traditional economy?

Answer 12

Farming, hunting, gathering.

Question 13

What will people do?

Answer 13

People will make what they always made and do the same thing as there parents did.

Question 14

What would the exchange of goods be done by?

Answer 14

Barting.

Question 15

Give an example of places that do barting.

Answer 15

Villages in Africa and South America, the inuit in Canada, Aborigines in Australia.

Question 16

What will be produced?

Answer 16

People follow tradition and make wait their ancestors made.

Question 17

How will it be produced?

Answer 17

People produced goods the same way their ancestors did.

Question 18

Who will consume them?

Answer 18

People in the village who need them.

Question 19

True or false, the wants or the essentials people need.

Answer 19

False, its what the people want.

Question 20

True or false, scarcity is the limited supply of something.

Answer 20

True

Question 21

True or false, all the economic choices are base on customs and answers for the law.

Answer 21

False, it is based on customs, traditions, beliefs on the past.

Question 22

True or false, barring means trading without money.

Answer 22

True

Question 23

What are all economic decisions that are made by the government?

Answer 23

1) sets the prices of goods and services.
2) determines the wages of workers
3) plans what will be made

Question 24

What is communism?

Answer 24

To ensure that all residents have their needs met and benefit equally from the production of goods and services.

Question 25

What are goals of a command economy?

Answer 25

1) communism
2) to ensure that all wealth stays in the hands of an elite few.
3) to grow a strong military.

Question 26

What are some potential advantages of a command economy?

Answer 26

1) government ensures that citizens’ needs are met through jobs, services (healthcare and education) and goods (food and clothes)
2) they government can quickly refocus production if needed.

Question 27

What are some potential disadvantages of a command economy?

Answer 27

1) it’s often difficult for the government to distribute resources fairly.
2) there’s little reason for businesses to do a better job
3) limit personal freedom because they restrict choices available.

Question 28

What is another name for market economy?

Answer 28

Free enterprise system.

Question 29

What is free enterprise?

Answer 29

Competition between companies, which shifts prices of goods/services.

Question 30

What happens when the government has no control of the economy?

Answer 30

Private citizens answer all the economic questions.

Question 31

How are economic decision made? Give an example

Answer 31

They are made based on changes in prices.
Ex: 1 car company starts to make SUVs, lots of people now want one, since so many people want one so many other car companies make them.

Question 32

What are some advantages of market economy?

Answer 32

1) buyers and sellers have a lot of freedom in they buy or sell.
2) They encourage innovations and inventions.

Question 33

What are some disadvantages of market economy?

Answer 33

1) some companies fail.
2) to make a profit, some people may use unfair practices.
3) often rewards individuals or companies that satisfy consumer demand rather than the common good.

Question 34

What are unfair practices?

Answer 34

1) paying poor salaries
2) make unsafe products
3) fail to contain pollution