Economies MP3 Flashcards
Define GDP
Measures value of goods and services produced in the economy in 1yr
Define CPI
Shows change of cost of goods and services
The transition from a command economy to a free market means changing from the economic goals of security and equality to_____and _____.
The transition from a command economy to a free market means changing from the economic goals of security and equality to FREEDOM and EFFICIENCY.
Define Industrial Production
Index that measures the production of the American Economy
What was the lowest point ever for the Industrial Production? When did it rebound
2009
Rebounded in mid.2014
Whats the appropriate CPI inflation rate?
1-2%
Define Consumer Confidence Index(CCI)
Index that shows the spending or saving activity of consuemers
When the consumer Index increases what decreases
Unemployment Rate
When the Industrial Production Increases what increases?
GDP
When there is an increase in the GDP, Consumer Price Index, INdustrial Production Consumer Confidence, and a decrease in Unemployment it is said that the economy is having an economic……
Economic Expansion
In a Command Economy who owns resources?
State/gov.
In a Free MArket Economy who owns the resources?
Private individuals and business
how are prices and products determined in a Command Economy?
Gov. Planners
Quota System
how are prices and products determines in a Free-MArket Economy
Market driven, supply and demand
WHo gets the goods in a Command Economy?
Everyone
Who gets the goods in a Free-Market Economy?
Those who can afford to buy goods
MAjor Economic Values of a Command Economy
Security and Equality
Major Economic Values of a Free-Market Economy
Freedom and Efficiency
