Econ Alive - Ch 3 Review

government-financed (payed for) projects such as dams, bridges, highways, and sewer systems

using resources in a way that produces the maximum amount of goods and services (goal)

state-owned industries are sold to private individuals and companies

an agreement between a buyer and a seller

decisions about (what, how and for whom to produce) are made by a powerful or some authority (economic system)

Economic goals of a market economy?

less fortunate members of society get economic supports they need to live a decent life (goal)

an economy produces more and better jobs (goal)

the fairness with which an economy distributes its resources and wealth (goal)

Countries also have different philosophies of government which reflect not only the laws & rules, but how individuals

an (economic system) in which economic decisions are left up to individual producers & consumers

_____focuses on private ownership of businesses and increasing wealth through competition(gov. phil)

This economic model shows how money, goods, and resources circulate in a market economy.

custom and tradition dictates (what to produce, how to produce it, and for whom) (economic system)

freedom, equal opportunity, property rights, profit motive, limited government, competition

an (economic system) where the government and people play an role in the production of services & goods

Economic Goals of a traditional economic system?

Economic Goals of a command economic system?

(gov. phil) in which all property & wealth are owned by all members of society

The government runs key industries, but there is still small privately owned businesses. (gov. phil)

ability to make own economic decisions without interference (goal)

Firms acquire land, labor, and capital from households using money that they receive in the______

the goods and services that people count on are there when they want them (goal)

Households buy products from firms with money that they receive in the_________