What type of economy does the U.S. have?
Who determines what and how much to be produced in free market economies?
Who makes all of the decisions in a command economy?
What 2 types of economies are combined in a mixed economy?
How are prices determined in a market economy?
What is the Law of Supply?
What is the Law of Demand?
At what point do Supply and Demand intersect?
Why do surpluses occur?
If a new diet supplement comes out, and proves to be highly effective, what will most likely happen?
Who is the founder of Capitalism?
Capitalism is based on.....?
What does the invisible hand mean?
What is the main disadvantage of capitalism?
What are businesses motivated by in capitalistic systems?
What is an oligopoly?
How are prices set in a monopoly?
If a grocery buys a dairy farm, what type of merger is that?
How are prices set in a perfectly competitive market?
Do you think that monopolies are a good idea? Why or why not?
Socialism is an the example of -------economic system.
What is the major concern of socialist systems?
What are the major disadvantages of socialism?
What is the basic advantage of socialism?
What is the difference between capitalism and socialism?
Free Market economy; Economis System: Capitalism
The Market (sellers and buyers)
The government/central planners
Market and Command
They are based on supply and demand
As the price goes up, the quantity of supply goes up OR As the price goes down, the quantity of supply goes down
As the price goes up, the quantity of demand goes down OR As the price goes down, the quantity of demand goes up
Equilibrium point or market price
The firm is charging too much for their product
The demand will increase
Adam Smith
Free Enterprise/Freedom to establish businesses and make profit
People's desire for self-gain will benfit the entire society/No government intervention
Greed and selfish pursuit of profit
Profit
Market with a few, large firms
The company that own the product sets the price
Vertical Merger
By supply and demand
a command based
Social equality provided by government intervention
lack of entrepreneurship and brain drain and high taxes
Mostly free government services for the citizens and perception of social equality
Capitalism -free enterprise socialism government controlled economy to create social equality
