Economic systems Flashcards
Part 1: Ecxonomic systems
What is economics?
Economics is the study of how individual and groups use limited resources to fulfill unlimited wants and needs.
What is a want?
A want is something someone would like to have.
What is an example of a want??
Soda.
What is a need?
A need is an essential of survival you need this.
What is an example of a need?
An example is clean drinking water
Give an example of what a good could be..
A good is cake.
What is the meaning of a good?
Good: products people consume or use
What is a service??
A service is something done by a person to help others.
Give an example of a service:
A service could be the checkout person at the grocery store.
Scarcity is the ______ _______ __ ______…
Limited supply of something
true or false: countries have enough resources to produce everything.
False, there are never enough resources at once.
What is the plan to use limited resources called??
It is called “Economic System”
What are the 3 questions the government developed to make an economic plan?
- what good services will be produced
- How will goods/ serviced be produced?
- who will produce the goods/ services
Economic decisions are based on what?
Customs, traditions, and beliefs of the past?
True or false: Gathering and hunting are the main activities…
True!!
What does it mean when it says the rely on beliefs of the past:
It means kids rely on the traditions of their parents..
What is the meaning of bartering??
Bartering is, trading without money.
What is the exchange of goods done through??
Bartering is done.
What villages or places use bartering to trade??
Africa, South America, the Inoit in Canada, and places in Australia.
how will it be produced??
they will produce the goods the way their ancestors did.
Who will consume them??
The people in the villages.
Part 2: Command economy:
All economic decisions are made by who:?
They are made by the government.
Fill in the blank: What is the first thing command economy does? It sets ____ __ ____ ___ _____.
It sets prices of goods and services.
What are the other 2 things command economy does?
Command economy:
- Determines the wages of workers
- Plans what will be made
what is the definition of communism?:
To ensure all residents have their needs met and benefit equally from the production of goods and services
What is one goal of the command economy:
A goal is to, ensure all residents have their needs met and benefit equally from the production of goods and services
What are 2 more goals of the command economy?45
- To grow a strong military
- ensures all the wealth stays in the hands of an elite fuel
Fill in the blank: The government ensures that citizens needs are met through _____.?
Jobs
What services are citizens met through?
Health care and education
What goods are citizens met too?
Goods such as food and clothes
The government can quickly refocus production if needed when and why:
During wartime, and if a shortage or excesss develops.
what could be a potential disadvantage:
- when the government cant distribute resources fairly
When they can’t distribute resources, fairly it limits citizens’ what??
It limits personal freedom by restricting citizens choices .
What is another disadvantage?
There is little reason for business’ to do a better job.
What is an event that could be an example of having or growing a strong military?
Ex: Nazi, Germany under hitlers rule in the 1930’s
Part 3: Market economy
What is another term for market economy?..
Another term is a free enterprise system
What is free enterprise system?
It is the competition between companies.
What is an example of competition between companies??
Shifts the employees work/ the prices of goods and services.
The government has no jurisdiction over who?
Economic private citizens.
Who exactly are “private citizens”?
They are citizens with no government relation.
Ex: A person working at the supermarket
Fill in the blank:
Economic decisions are based on changes __ ______ …?
“ in prices”
Give an example of changes in prices being a main decision point:
Example: a car company starts to make a new,profitable, popular, car (such as an SUV) -Eventually, loads of people will want the car.
-(SUVS are profitable so many car companies make them)
what is an advantage of market economy?
An advantage is buyers and sellers getting the freedom they deserve in what they buy/sell.
What is another good thing about market economy?
They encourage innovations and inventions.
Now for the disadvantages…. Name one:
some companies end up failing.
What are some bad practices some may use just to earn more profit?
-Paying poor salaries
-fail to contain pollution
- Make unsafe products for consumers
Ex: fake makeup
What is a kind of unfair tactic they have with salary’s?
They often reward individuals or companies that satisfy consume demand, rather than the common good.
Example: Professional athletes vs Police officer
