Economic Systems 24

Who believed that the poor would overthrow the wealthy and improve economic equality for all?

The two primary players in the circular flow of economic activity

Which is not one of the three economic systems types?

Transfer from private to state ownership or control.

The primary motive for producing goods and services in a market economy.

Occurs when the consumer & seller agree to do business in a market economy.

What does laissez faire mean in terms of economy

Closest example of a command economy

An economy that allows for economic interactions that cross international boundaries.

Believes the government should NOT interfere with economic decisions

Changing from government/public ownership to private industries.

Supported by Karl Marx

Believes that private property and profits promote incentive and hard work and new inventions.

The choice of consumers should determine what is produced.

The main goal of this economic system is survival. They make just enough to get by each year.

The invisible hand of the market determines prices for goods and services.

The government OWNS ALL of the resources in:

An advantage of the market economy.

What is the government's role under a mixed economy?

Economic system in some markets are free and some are regulated.

Hard work and innovation is more likely to be rewarded in a ________ economy.

What do consumers choose under the market system?

What are market economies based upon?

Economic freedom for all consumers is important in this economy.

Can not guarantee security to those who are not economically productive.

Economic System in which individuals and private groups make decisions about what to produce.

A business focuses on production of a limited scope of products or services. Increases efficiency.

ONLY the MAIN resources are controlled by the government in?

Economic system in which the government makes all decisions.

System in which the government supports free enterprise through some regulations that affect the market.

A major disadvantage of a command economy

Supported by Adam Smith

Believes that private property creates classes and conflict. Therefore private ownership should not exist.

Economic System in which subsistence farming takes place.