Introduction and Free-Market Model Flashcards
1
Q
Define Microecnomics:
A
Study of how individuals, households, firms, and others and how they allocate their limited resources
2
Q
What is a command economic systems?
A
Government determines the production, distribution, and consumption of goods and services
3
Q
What is a market economic system?
A
Individuals, businesses, and other distinct entities determine the production, distribution, and consumption of goods and services
4
Q
What are the two ends of the economic continuum?
A
Command Economic Systems
Market Economic Systems
5
Q
What is a free market model?
A
Two groups:
- Individuals who provide economic resources to firms (labor, capital, etc)
- Business firms pay wages, interest back to the individuals
- Individuals pay for goods and services to business
- Business provide goods/services
