Lesson 3

Question 1

What are the four economic agents

Answer 1

The four economic agents are

1. Governement
2. Consumers
3. Firms
4. International participants

Question 2

The role of economic system is?

Answer 2

The role of the economic system is to identify the owners of ressources and to explain why buyers/sellers meet.

Question 3

What is the socialist economic system

Answer 3

The Socialist economic system is a system which the central authority has the responsability to determine the nature and volume of the goods and services to be produced, the way of producing them and the consumer to offer them

AKA command and planned economy systems

Question 4

What is the Free-entreprise economic system?

Answer 4

It rests on volontary transactions between individuals (privately owned). The decisions are coordinated by the prices.

AKA Pure capitalism

Question 5

What is the Mixed economic system?

Answer 5

The mixed economic system is which transactions rest mainly on volontary decisions made by individuals but the State intervenes in some fields

Question 6

What is the difference between Macroeconomic and Microeconomic

Answer 6

Microeconomic studies the behavior of individuals economic units and Macroeconomic studies the behavior of broad economic

Question 7

Whats the difference between Positive and Normative economics

Answer 7

Positive economics explains and descibe how economy works and Normative economy explains and describes how economy should work.