Economics Ch.5 Flashcard Review FBHS

Front

Which type of economy has central ownership, the government, and lack of individual choice?

Back

Command

Front

Which type of economy is usually paired with a Communist government? Options: Mixed, Market, Command, Traditional

Back

Command

Front

Capitalism is in what type of economy?

Back

Market

Front

This means that the government should not interfere in the marketplace.

Back

Laissez Faire

Front

When customers and business owners exchange products and money, because it will help them both in some way.

Back

voluntary exchange

Front

The amount of money a business makes after its expenses are paid

Back

profit

Front

Focusing on a narrow range of products/services that can be produced most efficiently and cost-effectively.

Back

specialization

Front

Competition and profit motive are important characteristics of a:

Back

market economy

Front

The development of a worldwide economy where resources flow fairly freely across borders.

Back

Globalization

Front

Why is a demand curve downward sloping?

Back

because quantity demanded increases as price decreases