stock market Flashcards
what 3 basic questions does each economic system try to answer?
- what should be produced
- How should it be produced
- for whom should it be produced
how is each nation’s economic system determined ?
a. Barter system
b.sharing things in the community
c. subsistence Farming
d. many good are produced by families
How many main types of economic systems are there?
a. Traditional
b. command
c. market
d. mixed
Which economic system is the oldest system ?
Traditional system
In a traditional system, what determines the answer to what, how, and for whom things should be produced?
Tradition
What are the four main features of a traditional system?
- everyone knows role
- life is stable and predictable
- system discourages new ideas and new ways of doing something
- generally lower standard of living
Who is in control and makes all the economic choices in a command system?
Central authority/ government
Who has no or little choice in a command system?
The citizens
In which type of system do individuals make all the economic choices?
Market system
What is a market system also known as?
Capitalism
Who has little say or input in answering the three key economic questions in a market system?
Government
What develops when businesses have the freedom to buy and sell what they want?
Natural Market
In a natural market, what occurs between buyers and sellers?
Agree on what should be produced
what is key in a market system?
Individuals answer the economic questions
What type of economic systems do most countries have?
Mixed systems
