Economic Systems and Macroeconomics: Crash Course Economics

What three things do we, as a social order, need to figure out?

• What will we produce?

• How many of us are there?

• How will we produce it?

• Who gets it?

• How much does it cost?

What are two type of economies discussed in the video?

• communist economies

• planned economies

• socialist economies

• market economies

What are the factors of production (the major inputs required to produce stuff)?

• capital

• labor

• land

• businesses

Who controls the factors of production in a planned economy?

• government

• classes

• individuals

• oligarchs

In a _______ economy, the government completely controls everything about the economy

• command

• controlled

• efficient

• invasive

Who owns the factors of production in a free market, or capitalist, economy?

• individuals

• government

• classes

• oligarchs

The concept of the "invisible hand" only applies to a very small part of the free market.

• False

• True

The free market can't produce everything we need as a society, so the government still has a role to play (like providing police officers and bridges.)

• True

• False

The United States has a _____ economy.

• mixed

• free

• command

• unregulated

The "circular flow model" involves the _____ market and the _____ resource market.

• product

• resource

• free

• command