Types of Economies

What countries have a Command Economy?

• Iceland, Sweden, France, Australia

• United States, Russia, Africa, Haiti

• India, United Kingdom, Brazil

• North Korea, Cuba, Soviet Union, China, Vietnam

A large part of a command economic system is controlled by:

• a centralized power; federal government

• No one. It's an economy based off of individual freedom

The main strength of a command economy is that it can change direction drastically in a relatively short time:

• False

• True

How does competition work?

• companies compete with other companies to sell their goods at the best price

• when buyers compete with other companies to buy goods at the best price

• when you find out the snap chat is bad for you

• when you find out that Facebook is bad for you it will hit you right on the noggin

What are the advantages of a Free Market Economy?

• total government control

• King of Arlingmore has complete control over the Kenmore economy

• innovation, freedom of production, and competition (good for consumers)

• the economy is free to regulate itself and monopolies control businesses

Make Life easier or more pleasant

• Needs

• Wants

• Factors of Production

• Scarcity

Goods

• are intangible (you cannot touch them)

• make life easier

• are necessary for survival

• are tangible (you can touch them)

The economic resources used to make goods and provide services are known as

• natural resources

• the factors of production

• the unlimited wants

• resources are not used in goods or services

Opportunity Cost is

• one of your choices

• the option that you actually choose

• the option(s) that you give up

• another word for scarcity

Trying to satisfy unlimited wants with limited resources.

• Profit Motive

• Services

• Goods

• Scarcity