Economic Systems 24

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

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

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

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

Economic system in which the government makes all decisions.

Which is not one of the three economic systems types?

The two primary players in the circular flow of economic activity

The choice of consumers should determine what is produced.

Economic freedom for all consumers is important in this economy.

Supported by Adam Smith

ONLY the MAIN resources are controlled by the government in?

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

Economic System in which subsistence farming takes place.

An advantage of the market economy.

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

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

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

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

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

What do consumers choose under the market system?

The government OWNS ALL of the resources in:

Transfer from private to state ownership or control.

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

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

What are market economies based upon?

Closest example of a command economy

Supported by Karl Marx

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

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

Changing from government/public ownership to private industries.

What does laissez faire mean in terms of economy

Believes the government should NOT interfere with economic decisions

A major disadvantage of a command economy

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