Q1 ALLOCATION

Question 1

individual choices

Answer 1

made by the people acting separately from one another

Question 2

social choices

Answer 2

made by the government to satisfy the needs of society

Question 3

trade off

Answer 3

sacrificing one product for another

Question 4

benefits

Answer 4

positive outcomes or gains

Question 5

setbacks

Answer 5

losses

Question 6

opportunity cost

Answer 6

refers to the value of alternative given up to obtain another item or second best alternative

Question 7

high opportunity

Answer 7

more setbacks, less benefits

Question 8

low opportunity

Answer 8

less setbacks, more benefits

Question 9

effects of smart decision making for students

Answer 9

-future career
-better time management

Question 10

effects of smart decision making for family

Answer 10

-budgeting & career move

Question 11

allocation

Answer 11

deals with the distribution of economic resources to answer
the problem of scarcity

Question 12

economic system

Answer 12

provides a framework for societies to properly
use their limited resources and answer the
problem of scarcity

Question 13

conservation

Answer 13

Effective, orderly and wise use of resources

Question 14

3 types of economic system

Answer 14

Command (or planned system)
Market (or capitalist system)
Mixed (where there are both)

Question 15

8 command system characteristics

Answer 15

-State makes all the decisions
-Owns all resources except labor
-Incentive system; equality on people
-Mass production
-Rationing goods in the market (distribution)
-Little freedom
-Main priority is welfare of the state
-Prices are governments decision
-Source of info is planned

Question 16

8 market system characteristics

Answer 16

-Private individuals and organizations make all decisions
-Private ownership of resources
-Incentive system; Profit for capitalists and good-quality, affordable products for consumers
-Production is whatever is efficient and profitable
-Distribution is based on interplay on demand and supply
-Much, if not absolute freedom
-Main priority is welfare of consumers
-Prices depend on interplay of demand and supply
-Source of info is based on market

Question 17

What to produce in a Market system economy?

Answer 17

Consumers base their purchases on trend

Question 18

How much to produce in a Market system economy?

Answer 18

Depends on interplay of demand and supply

Question 18

How to produce in a Market system economy?

Answer 18

Depends on the individual business, but it must be profitable

Question 18

For whom to produce? in a Market system economy?

Answer 18

People who have money to buy more (encourages hard work and more investments)

Question 19

Capitalism

Answer 19

private ownership of businesses and marketplace competition

Question 19

Adam Smith

Answer 19

known as the “Father of Capitalism”

Question 20

Lassiez Faire

Answer 20

principle of governments non-interference
(in French means “Let Do”)

Question 21

What to produce in a command system economy?

Answer 21

depends on the person, dictator a group of government officials

Question 22

How to produce in a command system?

Answer 22

The state owns all property and resources and makes all desicions

Question 23

For whom to produce in a command system?

Answer 23

Government decision

Question 23

Karl Marx

Answer 23

the founder of the communism/command economy ideology.

Question 24

Communism

Answer 24

government runs everything (totalitarian government) with little to no freedom

Question 25

Mixed Economies

Answer 25

A type of economy that combines aspects of both capitalism and socialism.

Question 26

Socialism

Answer 26

main goal is to keep prices low for all and to provide employment for many

Question 27

How much to produce in a command system

Answer 27

Governments choice

Question 28

effect of smart decision making of citizens

Answer 28

-overseas workers sending remittances
-Payment of taxes
-Following government regulations