Card Set Information
Economic Systems Forster
Forster november 16th 2011
Adam smith's invisible hand refers to the role of:
What is an example of a market?
a starbucks store, a grocery store, ebay
A characteristic of a market economy that spreads out economic power between producers, so no one can have total control over prices
What is true about the product market?
Businesses sell goods and services to households
What market interaction takes place: The city of Edina builds a new public park
Product market interaction
What market interaction takes place: Larry purchases a new coat for the winter from Von Maur
What are the 3 basic questions?
What is produced?
How is it produced
For whom is it produced?
Must be limited in quantity and be desirable
Have one or more valuable use
Government answers the 3 questions
People answe 3 questions