Economic Systems and their Origins

He was a proponent of government involvement in the business cycle to prevent too much expansion and retraction.

• Milton Friedman

• Friedrich Hayek

• John Maynard Keynes

• Adam Smith

He believed that the economy is stable when run by private business unless the money supply is disturbed with fluctuations. He felt the government often caused those actions fueled by the Federal Reserve.

• Milton Friedman

• Friedrich Hayek

• John Maynard Keynes

• Adam Smith

He felt that individuals and businesses could follow their own interests. Greed caused by investors desire to make profits would be balanced because they must account fort he wants and needs of people when making and pricing their items. With this happening there would be a natural harmony and prosperity.

• Milton Friedman

• Friedrich Hayek

• John Maynard Keynes

• Adam Smith

There is some government involvement in things like health care and utilities. Non essential business are privately owned. Government is elected by the people. Government services and regulation is fueled by extensive taxes.

• Capitalism

• Communism

• Mixed Economy

• Socialism

Business control their decisions which are based off resource costs, prices and production costs. It encourages competition and usually is extremely efficient because Household and Firms have active and integral places in the system.

• Capitalism

• Communism

• Mixed Economy

• Socialism

He was a defender of free-market capitalism and was critical of socialist actions by the government. He analyzed monetary and economic fluctuations.

• Milton Friedman

• Friedrich Hayek

• John Maynard Keynes

• Adam Smith

Private businesses are involved in competition but the government is involved to keep things safe, provide services for its people and protect peoples rights/property.

• Capitalism

• Communism

• Mixed Economy

• Socialism

All resources and products are distributed by the government. Equality in gender and race is important in this system. Each person receives equal amounts of goods and services but is not an efficient system and causes stagnation in innovation.

• Capitalism

• Communism

• Mixed Economy

• Socialism

Choose which are examples of shortages. (Choose all that apply)

• The resources used to make an item have gotten more expensive but demand despite a higher price has not waned.

• A producer has made the item and charged way too much for the item so no one will buy it

• The business has done extensive research on consumer preferences and has made just enough to sell to everyone who wants the item.

• Word has spread about the excellence of a product and just as soon as it is on shelves it is gone leaving many unhappy consumers

Choose which are examples of surplus. (Choose all that apply)

• The resources used to make an item have gotten more expensive but demand despite a higher price has not waned.

• A producer has made the item and charged way too much for the item so no one will buy it

• The business has done extensive research on consumer preferences and has made just enough to sell to everyone who wants the item.

• Word has spread about the excellence of a product and just as soon as it is on shelves it is gone leaving many unhappy consumers