Economies Flashcards
Define goods
Physical objects or merchandise
Define services
The performance of any duties or work for another person; a helpful or professional activity.
Define economy
The system of production, consumption and trade of goods and services.
Define economic depression
A time of unemployment, low prices, low profits, and loss of business.
Define market
The area of trade or business.
Define supply and demand
The relationship between the production and consumption of goods and services.
Define and give an example of traditional economy
A traditional economy is an economic system in which decisions are based on customs, beliefs, or religions, within a strong social community.
E.x Use the cow for milk or share the meat with the community
Define and give an example of command economy
A command economy is an economic system in which the government controls all production and distribution of goods and services.
E.x The government takes your herd and puts you to work looking after them.
Define and give an example of market economy
A market economy is a system in which business and consumers decide what they will produce or purchase.
E.x You buy and build up a herd of dairy and beef cattle to sell.
Define and give an example of mixed economy
An economy that combines different economic systems, such as the market and command systems.
E.x it’s still your herd but you feel mixed up with government regulations.
What happens when supply is greater than demand?
Items will go on sale.
What happens when demand is higher than supply?
The price may rise.
Define primary industry
The collecting of raw materials for use in industry. Forest, mining, oil, natural resources, agriculture.
Define secondary industry
Manufacturing and construction activities. (Taking the product and making it into something): oil to gas, corn to corn oil, iron ore to steel.
Define tertiary industry
The providing of services, such as customer support, distribution of retail, buying and selling, (e.g truck driver, sales clerk, music teacher)
Define and give an example of the multiplier effect
The effects of spending in a local economy.
E.x Tourists at Niagara Falls
Define driven by profit
A company or business that is driven by profit.
Define labour resources
Man power/people in production
Define capital resources
If you start your own business you invest your own money or offer investors shares of the company.
Define land resources
Land resources are natural resources from the earth. Like soil, water, minerals, animals, energy sources and forests.
Define entrepreneurship
The process of designing, launching and running a new business.
Define subsistence agriculture
Subsistence agriculture is self-sufficiency farming in which the farmers focus on growing enough food to feed themselves and their families. The output is mostly for local requirements with little or no surplus for trade.
Who produces goods and services in a market economy, traditional economy and command economy?
Market economy- entrepreneurs and professionals
Traditional economy- family tribe
Command economy- government
What goods and services are produced for a market economy, traditional economy and command economy?
Market economy- anything that makes a profit
Traditional economy- materials needed only
Command economy- essentials only
How are goods and services produced in a market economy, traditional economy and command economy?
Market economy- modern technology
Traditional economy- traditional technology
Command economy- modern technology
For whom are goods and services produced in a market economy, traditional economy and command economy?
Market economy- paying consumers
Traditional economy- members of family or community
Command economy- people of that country only
How are goods and services distributed in a market economy, traditional economy and command economy?
Market economy- advertising
Traditional economy- equally sharing or bartering
Command economy- government
What are the 5 economic questions?
- Who produces the goods and services?
- What goods and services are produced?
- How are goods and services produced?
- For whom are goods and services produced?
- How are goods and services distributed?
