economic systems Flashcards
what is the general definition of an economic system?
how a society produces, controls, and distributes production.
what is the difference between Canada’s economic system versus US/s economic system>
Canadian:
mixed economy
US: a free economy
what are the general characteristics of a mixed economy
mixed economies: both government and individuals make economic decisions
- the government provides health care, social services, and regulations of what to put on ads,
what are the general characteristics of a purely free economy?
- also called “lazies fair” economy
- the government does not intervene on economic decisions
- competition
- individualism(consumers get to choose what to buy)
why does the government intervene in a market economy?
to regulate competition
what is income tax?
base on how much income you make, the income you make, the more income tax you pay to the government
what is tax evasion?
a
what are the 4 questions an economic system has to answer?
1) who will produce
20 who distributes
3A`
what is GDP?
- stand for gross domestic product per capita
- the measure of the amount of wealth that country’s economy generates per capita(per person)
why are labor unions important?
unions of workers that represent the needs and conditions of employees. They represent the rights and interests of the workers.
what is the role of the consumer?
s
how do our choices affect our identity?
a
how does marketing affect consumer behavior?
- they make ads persuasive with information, they influence our decisions
why dies the environment play a big role?
a
what is scarcity?
when the demand for a product is so high the resources needed is low
