TYPES OF ECONOMIC SYSTEMS

Question 1

Basic needs (osnovne potrebe)

Answer 1

things essential for existence (food, water, shelter, clothes and warmth)

Question 2

Profit

Answer 2

the difference between the selling price and the cost of production

Question 3

Resources (izvori)

Answer 3

a) money, land, workers, machinery we need to produce goods;

b) oil, land or a
natural energy that exists in a country and can be used to increase its wealth

Question 4

Scarce (oskudno)

Answer 4

there is not enough of it available

Question 5

To allocate resources

Answer 5

decide which resources should be used for a particular purpose

Question 6

wants

Answer 6

desire to obtain goods and services one does not have

Question 7

competing wants

Answer 7

deciding what we can afford to buy and what not

Question 8

priority

Answer 8

something that has great importance

Question 9

supply (ponuda)

Answer 9

the number of goods and services offered for sale over a period of time

Question 10

demand (potražnja)

Answer 10

the number of goods and services that buyers are willing and able to buy over a period
of time

Question 11

market forces

Answer 11

supply and demand which help to decide the price and control what should be
produced

Question 12

competition

Answer 12

a process in which companies strive against each other to secure customers for
their products, the active rivalry of companies

Question 13

public goods (javna dobra)

Answer 13

goods and services provided by the government for the benefit of the whole
community, where consumption by one person does not reduce the amount available to others

Question 14

merit goods

Answer 14

goods which are underprovided by the private sector, such as education and
health, and are sometimes supplied by the state, that is services that may not be available to all
individuals if not provided by the state

Question 15

Market economy - capitalist, free enterprise, unplanned, laissez faire

Answer 15

an
economy in which companies are not controlled by the government but decide for themselves what
to produce and sell, based on what they believe they can make a profit from, that is the market
mechanism (supply and demand)

Question 16

planned - command, controlled economy

Answer 16

an economy in which the government of a
country owns most of the industry and makes all economic decisions, that is resources belong to the
state and goods and services are distributed to consumers by the state

Question 17

mixed economy

Answer 17

an economy in which some resources are allocated by the government (in the
public sector) and the rest by the market system (in the private sector)

Question 18

market system - mechanism

Answer 18

an exchange system that brings together buyers and sellers

of a product