Social Studies: The Economy Flashcards
What does PRODUCER mean?
A person who makes goods or services to sell
What does CONSUMER mean?
Someone who buys goods or services
What does FREE ENTERPRISE SYSTEM mean?
An economy in which people are free to start their own business and produce whatever goods or services they want
What does COMMAND ECONOMY mean?
An economy where the government decides what goods or services can be sold
What does PRIVATE PROPERTY mean?
The land or goods that people or companies own
What does INVOLVE mean?
To take into account, or include
What does INDIVIDUAL mean?
A single human being
What are the differences between needs and wants?
Needs are what you MUST have to survive, such as food, shelter and clothing. Wants are what you would LIKE to have but can do without.
Which of these are WANTS? Why are they wants and not needs?
Bread
Donuts
Rice
Hamburger
Steak
Computer
Phone
WiFi
Blue jeans
Bottled water
Coffee
Skateboard
Bike
Grand Canyon tour
Running shoes
Sometimes it is not easy to distinguish between wants and needs - sometimes it depends on the circumstances.
What are some pros and cons for market economy?
Pros:
- Producers are free to decide what to sell
- More producers and more goods/services mean more choices for consumers
Cons:
- Some producers might choose to produce goods that might not be good for society (for example weapons)
- If the economy is driven by profit, some goods or services that are less profitable might not be available (such as libraries, parks)
- There might be a big gap between the rich and the poor in a market economy, or maybe rich people will get better goods and services than the poor
What are some pros and cons for command economy?
Pros:
- The government will make sure goods and services that benefit the general public are produced (such as libraries, parks)
- The government will try to manage the gap between the wealthy and the poor, and that even the poor will have their needs met (because the government could control prices as well)
Cons:
- In a command economy, consumers might have fewer choices because there might be fewer producers
- Government decisions are often slow, so the economy might not grow as much
Does the government have a role in a market economy?
Yes. A market economy needs some rules to protect producers and consumers, and the government will make and enforce these rules (laws).
For examples, there are rules to protect private property (homes, land, stores, goods, etc.).
The government will also produce goods and services that benefit everyone such as schools, roads, libraries and parks.
What are some examples of natural resources
Trees, fuel, water, crops
What are some examples of human resources
Labor (people), human expertise (doctor, teacher)
What are capital resources, and what are some examples
Human-made products used to make goods or services
Examples: machines, tools, materials such as plastic
