Unit 2: Economic Systems

Front 1

as specialization and interdependence increases, the more important is the development of an ec system to...

Back 1

organize and coordinate production and distribution

Front 2

why do different types of ec systems evolve?

Back 2

in response to the neecd to coordinate activities, respond to the questions of what to produce, how to produce it, and how to allocate what is produced

Front 3

market economies

Back 3

an ecdonomic system in which the basic questions of what, how, and for whom to produce are resolved primarily by buyers and sellers interacting in markets

Front 4

private property rights

Back 4

the exclusive right of someone to use a scarce resource or good in whatever manner the think best

Front 5

3 requirements for a market economy

Back 5

(1) all individuals and companies have private property rights (2) they have the right to freely trade or sell their property to others (3) everybody is allowed to pursue their self-interest (making the biggest profit/receiving the most benefits from each dollar)

Front 6

"care takers" in an economy with private property

Back 6

the concept that people are more likely to take good care of a resource or good if they know that it is theirs

Front 7

another name for market economies

Back 7

capitalist or free enterprise economies

Front 8

centrally directed (command) economy

Back 8

an economic system in which the basic questions of what, how, and for whom to rpoduce are resolved primarily by governmental authority

Front 9

how do central directed economies function?

Back 9

a central planning commission draws up a master plan, which is then put into effect by national, regional, and local government agencies

Front 10

who owns the natural resources and capital goods in a central economy?

Back 10

the govt

Front 11

who are the workers in a central ec?

Back 11

people employed in govt enterprises or in the govenrnment agencies that plan and administer the system

Front 12

what is the solution to scarcity in a central ec?

Back 12

a formal rationing system or selling on a first come first serve basis

Front 13

traditional economies

Back 13

an economic system in which the basic questions of what, how, and for whom to produce are resolved primarily by customs and traditions

Front 14

ex of traditional ec in the way jobs are allocated

Back 14

India; remnants of the caste system; the belief in birth determining one's destiny

Front 15

mixed economy

Back 15

an economic system in which the basic questions of what, how, and for whom to produce are resolved by a mixture of market forces with governmental direction and/or custom and tradition

Front 16

the US is an example of...

Back 16

a market economy with a mixture of govt regulation and govt ownership

Front 17

China is an example of...

Back 17

a centrally directed ec with some private ownership and sales

Front 18

the Soviet Union and the countries of Eastern Europe are examples of...

Back 18

countries transitioning from centrally directed to market economies

Front 19

India is an example of...

Back 19

a mixture of market, command and tradition economies