Flashcards
Economics Unit 12
Cards in this deck (25)
- 1What are the three fundamental economic questions?What to produce, how to produce it, and who will it be produced for
- 2Why are goods and services produced?scarcity
- 3What are the most wanted/needed goods?food, water, clothing, etc.
- 4What is an economic system?a way in which society coordinates the production and consumption of goods and services
- 5what is a traditional economy?tradition decides what, how, and who
- 6what is a command economy?a powerful leader decides what, how and who
- 7what is a market economy?individuals make their own economic decisions
- 8what is a free market economy?workings are not planned or directed
- 9What is a circular flow model?describes how resources money, goods, and services flow through the economy
- 10what is a firm?a business organization that sells goods/services for profit
- 11what is a product market?goods and services are produced by firms and consumed by households
- 12what is a factor market?a marketplace for the services of factors of production
- 13what is a factor payment?payments for the services of scarce resources
- 14what is a mixed economy?an economic system where the government and individuals both play important roles / features characteristics of both capitalism and socialism
- 15what is the government's role in a mixed economy?establish institutions, to regulate, and to provide things that the market cannot
- 16what is capitalism? what is a capitalist?capitalism is a free market system
a capitalist is an individual investor - 17what is socialism?socialism is a political and economic philosophy that calls for property to be owned by society as a whole
- 18what is communism?communism is a political and economic system in which property and wealth are owned by all members of a society
- 19what is economic freedom?the ability to make your own economic decisions
- 20what is full employment?when all who want to work can find jobs
- 21what is economic equity?concept of fairness in an economy
- 22what is economic growthwhen an economy produces better goods/services
- 23what is economic security?the condition of having financial stability in an economy
- 24what is a free enterprise system?few restrictions on business activity and ownership
- 25what are the seven characteristics of a free enterprise system?economic freedom, competition, equal opportunity, binding contracts, property rights, profit motive and limited government