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Jessica92
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What are the roles of the government?
- 1) Defense/ Protect
- 2) Enforce contracts
- 3) Correct market failure
- 4) Provide public goods
- 5) Transfer income
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What are the three types of economics?
- Communism
- Socialism
- Capitalism
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Communism
- Government controls all resources
- Makes all decisions
- Shortages
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Socialism
- Welfare state
- Most resources= privately owned/ no gov. control
- Key industries= gov. controlled/ owned
- Extensive regulations
- Most decisions made by private sector
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Capitalism
- All decisions made by market
- No regulations
- No gov. buildings/ state parks
- Business= do wht they wnt--all resources=privately owned
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Illustrate change in demand
- Shift to the right= decrease
- Shift to the left= increase
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Illustrate change in quantity demanded
Occurs only when price changes 
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Illustrate change in Supply
- To the left= decrease
- To the right= increase
- Caused by change in one of the determinants of supply
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Illustrate change in quantity supplied
Caused by a change in price 
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Determinants of Supply (six)
- Production
- Cost of resoruces
- Prices of other comodities
- Expectations
- Number of sellers
- Taxes and subsidies
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Determinants of Demand (five)
- Tate and preference- popularity
- Income- rises=dmnd 4 mst goods= up
- Price of related goods-price of concerts rise=dmnd for movie tickets increase (substitute goods)--dmnd 4 complementary good rises= dmnd 4 other declines--hot dogs rise=hot dog buns decline
- Number of Buyers- lnger life=medical services, retirement homes
- Expectations about future- snow= shovels, generators, snow blowers
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