Quiz 4 Flashcards
Advantages of Market economies
Economic and political freedom
Profit
Incentives to come up with good ideas is related to another advantaged of a market economy
Competition
Economic and political freedom
Freedom is one of the chief advantages of a market economy
Fewer areas of government involvement unlike the command economy
A market economy also can be responsive to changes in conditions and accommodate those changes quickly
Individuals in local communities are free to make their own economic choices without the interference of the government
Profit
The profit motive, a key feature of the market economy, ensures that resources will be allocated efficiency, since inefficiencies would result in lower profits
leads to higher- quality products at lower prices and helps create a diverse product market
Competition
In a _________the economic good of the individual is the primary focus
Pure Market Economy
Disadvantages of Market Economies
A pure market economy has no mechanism for providing public goods and services Ex.) National Defense
Pure market economies cannot provide security to those who, because of sickness or age, cannot be economically productive
Nor can it prevent the unequal distribution of wealth, even though the gap may be the result of unequal opportunities
The _____ is the most common type of economic system today
mixed economy
A____ is an economy that had elements of traditional, command, and market systems
mixed economy
In ________ the market economy dominates
United States
tried to find a middle ground between socialism and capitalism
France
while also a mixed economy, has much greater government involvement
Sweden
The Swedish government and government related organizations own of all swedish companies
one- third
Swedish citizens receive ________ social benefits
“cradle to grave”
to _______means to change from private ownership to government or public ownership
nationalize
More recently, many economies have moved away from command systems to
market systems
