Types of Economies |
#1 |
What type of economy does the U.S. have? |
Free Market economy; Economis System: Capitalism |
#2 |
Who determines what and how much to be produced in free market economies? |
The Market (sellers and buyers) |
#3 |
Who makes all of the decisions in a command economy? |
The government/central planners |
#4 |
What 2 types of economies are combined in a mixed economy? |
Market and Command |
#5 |
How are prices determined in a market economy? |
They are based on supply and demand |
Supply and Demand |
#1 |
What is the Law of Supply? |
As the price goes up, the quantity of supply goes up OR As the price goes down, the quantity of supply goes down |
#2 |
What is the Law of Demand? |
As the price goes up, the quantity of demand goes down OR As the price goes down, the quantity of demand goes up |
#3 |
At what point do Supply and Demand intersect? |
Equilibrium point or market price |
#4 |
Why do surpluses occur? |
The firm is charging too much for their product |
#5 |
If a new diet supplement comes out, and proves to be highly effective, what will most likely happen? |
The demand will increase |
Socialism |
#1 |
Socialism is an the example of -------economic system. |
a command based |
#2 |
What is the major concern of socialist systems? |
Social equality provided by government intervention |
#3 |
What are the major disadvantages of socialism? |
lack of entrepreneurship and brain drain and high taxes |
#4 |
What is the basic advantage of socialism? |
Mostly free government services for the citizens and perception of social equality |
#5 |
What is the difference between capitalism and socialism? |
Capitalism -free enterprise socialism government controlled economy to create social equality |