Economics Vocabulary Flashcards
Tradition Based Economy
Economic decisions based largely on customs. Production is based on ways that have been followed for hundreds of years. Farming and herding are common jobs.
Economic Systems
The way in which a society decides how to use its resources to produce and distribute goods and services.
What are some examples of Tradition Based Economies?
The Amish and Kenyans
3 Advantages and Disadvantages of a Tradition Based Economy
Advantages-No Taxes, No Crime, No Competition
Disadvantages-Little Technology, Marriage Arranged, No Potential
Command Economic System
A central agency, usually the government, that owns and controls the factors of production and decides what the country will distribute.
What are some examples of Command Economic Systems?
China and North Korea
What are some advantages of a command based economic system?
Everyone has a job, almost no crime, and government takes care of people.
Disadvantages of a Command Based Economic System?
Few own decisions, no voting, and little to no health care.
What is a market economic system?
Individual people and businesses decide what, how, and how much they will produce and how the products will be distributed
What are some examples of Market Economic Systems?
U.S., Great Britain, Canada
What are some advantages of market economics?
Making your own decisions, having many freedoms, and very good education.
What are some disadvantages of Market Economics?
Lots of crime, risk of unemployment, and inequality, or social classes.
