1.economic system-the methods used by a society to produce and distribute goods and services
2.Tradictional economy relies on habit, custom, or ritual to decide what to produce, how to produce it, and to whom to distribute it to. Market economy is and economy where economic decisions are made by individuals and are based on exchange/trade. Command economies are centrally planned economies. Mixed economies are economies that are market based and govt. plays a limited role.
3. Some factors differ because they are worth because they provide different amounts of different products.
4. Govt. provides safety nets because they want their citizens to have a higher standard of living.
5. traditional- Amish
Command- Cuba
Market- US
6. The Economic Goals of the US govt. are giving their citizens a nice fat cushion to rest their big fat a@$es on....looks like an epic fail to me.
7. Traditional Economy- customs and traditions; Market Economy- Individual freedom; Command Economy- economic equality; Mixed Economy- limited govt. involvement
Pg 32 #1-8, 10
1. Specialization allows us to find proper people for specific jobs allowing all others to do their own jobs.
2. The factor market gets resources and turns them into the "consumer friendly" product market.
3. profit- financial gain made in a transaction
4. Firms produce products and households purchase them.
5. Competition between firms often leads to more modestly priced goods.
6. when Adam Smith said "the Invisible Hand of the marketplace" he meant that competition between firms makes companies produce the most cost effective products.
7. Incentives are connected to consumer sovereignty because when people have incentive to buy a certain product they will use their sovereignty to buy the specific one that they want.
8. Economic equity is difficult to achieve in a free market economy because some people do different work, others work harder than other, and some people are smarter than different people.
10. Three examples that illustrate the circular flow model of a market economy are lumber jacks providing wood for all those dirty, dirty school teachers who need it bad.....for paper and stuff, paper companies who turn that wood into paper, and the people who buy the paper from the companies.
Pg 34-38 Vocab
socialism- social and political philosophy based on the belief that democratic means should be used to evenly distribute wealth throughout a society
communism- a political system characterized by centrally planned economy with all economic and political power resting in the hands of the central govt.
authoritarian- requiring strict obedience to an authority
collective- large farm leased from the state to groups of peasant farmers
heavy industry- industry that requires a large capital investment and that produces items used in other industries
Pg 27 #1-7
1.economic system-the methods used by a society to produce and distribute goods and services
2.Tradictional economy relies on habit, custom, or ritual to decide what to produce, how to produce it, and to whom to distribute it to. Market economy is and economy where economic decisions are made by individuals and are based on exchange/trade. Command economies are centrally planned economies. Mixed economies are economies that are market based and govt. plays a limited role.
3. Some factors differ because they are worth because they provide different amounts of different products.
4. Govt. provides safety nets because they want their citizens to have a higher standard of living.
5. traditional- Amish
Command- Cuba
Market- US
6. The Economic Goals of the US govt. are giving their citizens a nice fat cushion to rest their big fat a@$es on....looks like an epic fail to me.
7. Traditional Economy- customs and traditions; Market Economy- Individual freedom; Command Economy- economic equality; Mixed Economy- limited govt. involvement
Pg 32 #1-8, 10
1. Specialization allows us to find proper people for specific jobs allowing all others to do their own jobs.2. The factor market gets resources and turns them into the "consumer friendly" product market.
3. profit- financial gain made in a transaction
4. Firms produce products and households purchase them.
5. Competition between firms often leads to more modestly priced goods.
6. when Adam Smith said "the Invisible Hand of the marketplace" he meant that competition between firms makes companies produce the most cost effective products.
7. Incentives are connected to consumer sovereignty because when people have incentive to buy a certain product they will use their sovereignty to buy the specific one that they want.
8. Economic equity is difficult to achieve in a free market economy because some people do different work, others work harder than other, and some people are smarter than different people.
10. Three examples that illustrate the circular flow model of a market economy are lumber jacks providing wood for all those dirty, dirty school teachers who need it bad.....for paper and stuff, paper companies who turn that wood into paper, and the people who buy the paper from the companies.
Pg 34-38 Vocab