Unit 1: Activities 1-3 Flashcards
1
Q
Economics is…
A
The study of how we make decisions regarding the use of our scarce resources to satisfy our human needs and wants.
2
Q
Economic questions should target…
A
Economic Significance
Economic Perspective
Cause and Effect
Stability and Variability
3
Q
An effective question in economics should…
A
generate other additional questions
lead to more than one possible answer or response
link to essential ideas in the discipline
connect to a concept of economic thinking
focus upon aspects of the content or evidence under exploration
4
Q
Mixed Economic System…
A
- Both the government and the people determines how the three basic questions are answered.
- A mix between Command and Market Economies, where both market and non-market forces determine how resources will be allocated.
- Self-interest, ownership and profit are allowed, although there is often a government safety net.
- The market aspect of this economy allows for competition and variety of goods being produced.
5
Q
3 key economic questions are…
A
What to produce?
How to produce?
Who gets what is produced?
6
Q
Traditional Economic System…
A
- Customs, social patterns, religion or ideas passed down over time determine how the three basic questions are answered
- Discourages change or growth.
- There is little incentive for individuals to seek better ways of doing things.
- This economic system has a lot of stability, as long as it lasts.
7
Q
Market (Free Enterprise) Economic System…
A
- Individual consumers and businesses determine how the three questions are answered
- Buyers and sellers cast their “votes” by making purchases in the marketplace.
- Supply and demand determine the price
- Individuals and corporations have the right to own consumer and capital goods and earn a profit.
8
Q
Command (Centrally Planned) Economic System…
A
- The government or central authority makes all decisions on behalf of the people and determine the price and allocation of resources to achieve goals
- Government also owns the factors of production. -Planning in this economic system is extremely complex and the possibility of errors is extremely high
