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44 Cards in this Set

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Put the political-economic systems in order from the most decentralized to the most centralized?
Capitalism, Free Enterprise
Mixed Free Enterprise
Socialism
Fascism
Communism
What is the difference between scarcity and shortage?
Scarcity will always exist, and shortage is temporally.
How dose the market system answer how much?
Whomever is willing to buy more of it? (Products)
What is a Resource?
Anything that people can use to make or obtain what they want.
Where in the world are there traditional systems?
Latin America, Asia, Africa
What is a Natural Resource?
Land and minerals deposits such as iron ore gifts from nature.
Where in the world are there market systems?
United States, Australia, Canada
What is a Capital resource?
All the property people use to make other goods and services is capital man made.
How dose the market system answer the "what"?
Producers provide what consumers are willing to buy.
What is Real Cost?
The actual materials that are used to make a product.
Where in the world are there command systems?
China, Cuba, Korea, Ex Soviet Union.
What is Productive Resource?
It is the combinations of goods and services that can be produced.
Dose Capitalism had primarily the element of Market?
Yes
For what purpose do economist use real world data in building models?
They are used for to test hypotheses and theories.
What is the guiding principle of the market system?
Self-interested
What is the difference between a need and a want?
Need is something you have to have to survive and wants are wishes and desirers.
Dose Mixed free enterprise had primarily elements of Market and slight Command?
Yes
What is Scarcity?
It means that people do not and cannot have enough income, time, or other resources to satisfy their every desire.
How dose the market system answer the how?
Workers and producers must compromise to make a profit.
What is Entrepreneurship?
The ability of individuals to start new businesses, to introduce new products and techniques, and to improve management techniques.
What outside forces are introducing change in traditional systems?
(Technology) contact with western nations.

(Natural disasters) climate and wars
What are Opportunity cost?
The value of the next best alternative that had to be given up for the alternative that was chosen.
Dose Communism had primarily the element of Command?
Yes
What are Services?
It is the activities done for others for a fee.
How dose the command system answer the "how much"?
The government sets productive quotas.
What are Capital goods?
The machines used to produce other resources.
How dose the command system answer the "for whom"?
The government sets prices.
What is Technology?
The use of science to develop new products and new methods for producing and distributing good and services.
What are the four components in order for a market system to work?
Private property,
Free exchange,
Profit motive
Competition.
What are Human Resource?
(labor)- anyone who works/human effort.
Dose Socialism had primarily elements of Command and Market?
Yes
What is Tradeoff?
It is exchanging one resource for the other resource.
Who answers the "what" in a traditional system?
They make whatever their ancestors made.
What are Production possibilities?
Are all the combinations of goods and services.
Dose Free Enterprise had primarily element of Market?
Yes
What is Economics?
The study of how individuals and nations make choices about how to use scarce resources to fulfill their wants.
What are the benefits of competition in a market economy?
Consumers have more choices
Prices are lower
Producers make products efficiently to make a profit
What is (Consumer) Goods?
The items that people buy.
How dose the command system answer the how?
Government controls the who is going to work and where they will work
And how much they will work.
The Factors of Production are?

a. Entrepreneurship
b. Labor
c. Land
d. Capital
E. Technology
Dose Fascism had primarily elements of Command and little market?
Yes
What are the Factors Of Production?
The resources of land, labor, capital and entrepreneurship.
How dose the command system answer the what?
whatever the government wants like what products.
What dose a traditional system accept change more easily?
When it dose not get in the way with cultural values.