Economic Systems Flashcards
0
Q
3 economic questions each system must answer:
A
- What and how much should be produced?
- How should goods and services be produced?
- How should goods and services be distributed?
1
Q
Economics
A
The study of human efforts to satisfy unlimited wants with limited resources.
2
Q
3 economic systems:
A
- Communism
- Socialism
- Capitalism
3
Q
Communism characteristics:
A
- One class
- Property held in common
- No need for gov’t
4
Q
Communism developed by:
A
- Karl Marx
2. Friedrich Engels
5
Q
Communism book:
A
- Communist Manifesto
2. Friedrich Engels
6
Q
Who answers in Communism?
A
Gov’t, then the people.
7
Q
Problems in communism:
A
- No incentive or motivation to do better
2. In reality, people never get the power back from the gov’t
9
Q
Example of communism:
A
Soviet Union and North Korea
10
Q
Characteristics of socialism:
A
- Redistribution of wealth and opportunity
2. Public ownership of some industries
11
Q
Who answers in socialism?
A
People and gov’t.
12
Q
Example of socialism:
A
Sweden
13
Q
Characteristics of capitalism:
A
- Private ownership
- Competition
- Freedom of choice
- Possibility of profit
- No gov’t interference (laissez-faire)
14
Q
Capitalism developed by:
A
Adam Smith
15
Q
Capitalism book:
A
Wealth of Nations
