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17 Cards in this Set
- Front
- Back
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What is pure capitalism characterized by? |
An economic system characterized by private ownership of the means of production, decentralized decision-making, and market implementation |
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A "laissez-faire" economy is |
An economy in which the role of the government is very limited and conducts routine functions only |
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In pure capitalism, consumers are protected from bad products and high prices by the presence of what? |
Competition |
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According to the circular flow model |
Households own factors of production that firms by and firms sell produce, services, and goods to households |
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According to the concept of consumer sovereignty |
Businesses attempt to produce the products that are most desired by customers |
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Which of the following is not a characteristic of pure demand socialism |
Decentralize decision making |
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What are some of the characters of pure command socialism |
Central planning and coordination of economic decisions by the government |
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Pure capitalism and pure command socialism are both |
Economic models |
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Is the United States economy a pure capitalist economy |
No but it is closer to capitalism than socialism |
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What are the three fundamental questions to ask about an economic system? |
1. What to produce 2. How to produce 3. For whom to produce |
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In the circular flow diagram what are the two markets in a circular flow diagram |
Product markets in which firms sell and households buy Resource markets in which house would sell in firms buy |
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In a circular flow diagram Money flows in what direction |
Counter clockwise |
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In a circular flow diagram goods and services flow in which direction |
Clockwise |
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What is a summary of pure capitalism |
Circular flow diagram decentralize system: market mechanism/invisible hand/price mechanisms |
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What is a summary of the pure command socialism system |
Pyramid model with government at the top, centralized system: central planning/visible hand of government |
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What is the functioning of prices? |
Rationing signaling motivating |
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Consumer sovereignty is a theory that |
Consumer preferences determine the production of goods and services |
