Economic Systems

Question 0

3 economic questions each system must answer:

Answer 0

1. What and how much should be produced?
2. How should goods and services be produced?
3. How should goods and services be distributed?

Question 1

Economics

Answer 1

The study of human efforts to satisfy unlimited wants with limited resources.

Question 2

3 economic systems:

Answer 2

1. Communism
2. Socialism
3. Capitalism

Question 3

Communism characteristics:

Answer 3

1. One class
2. Property held in common
3. No need for gov’t

Question 4

Communism developed by:

Answer 4

1. Karl Marx

2. Friedrich Engels

Question 5

Communism book:

Answer 5

1. Communist Manifesto

2. Friedrich Engels

Question 6

Who answers in Communism?

Answer 6

Gov’t, then the people.

Question 7

Problems in communism:

Answer 7

1. No incentive or motivation to do better

2. In reality, people never get the power back from the gov’t

Question 9

Example of communism:

Answer 9

Soviet Union and North Korea

Question 10

Characteristics of socialism:

Answer 10

1. Redistribution of wealth and opportunity

2. Public ownership of some industries

Question 11

Who answers in socialism?

Answer 11

People and gov’t.

Question 12

Example of socialism:

Answer 12

Sweden

Question 13

Characteristics of capitalism:

Answer 13

1. Private ownership
2. Competition
3. Freedom of choice
4. Possibility of profit
5. No gov’t interference (laissez-faire)

Question 14

Capitalism developed by:

Answer 14

Adam Smith

Question 15

Capitalism book:

Answer 15

Wealth of Nations

Question 16

Who answers in capitalism?

Answer 16

The people

Question 17

Example of capitalism:

Answer 17

U.S.A.

Question 18

Problem with capitalism:

Answer 18

No one to take care of the poor

Question 19

Problem with socialism:

Answer 19

1. High taxes
2. Creates a big gov’t (leads to inefficiency)
3. Could lead to dictator