Economic Systems and Goals Quiz

What are the characteristics of a COMMAND - Centrally Planned Economy - COMMUNISM?

• ⋅ Gov't makes all choices

  ⋅ Gov't answers the 3 economic questions

  
  ⋅ No consumer sovereignty

• ⋅ Consumers answer the 3 economic questions

  ⋅ Range of economic and political systems

  ⋅ Gov't uses it's power of tax to redistribute the wealth

• ⋅ Consumers answer the 3 economic questions

  ⋅ Gov't allows ownership of private property

  ⋅ Can be apart of a democratic system

• None of the above

What are the characteristics of a Free Market?

• Market without government control

• Government has all market control

• Economic questions are answered by the businesses and individuals

• Even distrbution of wealth

Why do markets exist?

• Creates buyers and sellers

• To bring people their wants and needs

• To trade for products with people

• To allow people to buy/sell, or exchange product

What drives the market?

• The economy

• Self-interest

• Competition

• Businesses

What are the characteristics of Mixed Economies?

• ⋅ No consumer sovereignty

  ⋅ Can't be apart of a democratic system

• 
  ⋅ Gov't makes all choices

  ⋅ Gov't answers the 3 economic questions

• ⋅ USA market

  ⋅ Market has limited restrictions

• ⋅ Some government oversight and regulation.

  ⋅ Can be apart of a democratic system

What are the characteristics of Traditional economy?

• Tight knit community that cares for it's own

• Depended on exhanging/trading goods and hunting & gathering

• Type of mixed economy

• Gov't had control

What are the disadvantages of a Traditional economy?

• Created low standard of living

• Depended on trading another for goods

• Lack of technology

• Tight knit community

What are the 5 economic goals?

• • Growth

  • Efficiency

  • Certainty

    Simplicity

  • Freedom

• Certainty

  Simplicity

  Equity

  Efficiency

• • Equity

  • Security

  • Freedom

  • Growth

  • Efficiency

• Certainty

  Simplicity

  Security

  Growth

  Efficiency

What's Equity?

• Waste not, want not

  Maximize what can be produced using the available resources

• How will we divide the economic pie? - fairness

• items I expect to be at the store will be there

• Determined by GDP Gross Domestic Product. If GDP went up there is growth, down no growth.

What's Security?

• Waste not, want not

  Maximize what can be produced using the available resources

• How will we divide the economic pie? - fairness

• items I expect to be at the store will be there

• Determined by GDP Gross Domestic Product. If GDP went up there is growth, down no growth.