Economics Chp 2 (1)

The flashcards below were created by user hey_itsdarra on FreezingBlue Flashcards.

Traditional
(Type of Economic Systems)
- Based on customs and beliefs and passed on from one generation to the next.
- -You follow in your father's footsteps
Advantage of a Traditional System is that.......

You know what you are expected to do when you grow up and learn from your father or mother
Disadvantage of a Traditional System is...

The strong attitude toward lack of change or development of new methods or technologies
Command
(Type of Economic Systems)

Based on little, if only, individual involvement in decision making with all economic decisions being made by the government and its leaders
factors, production, to use them

The government controls all _____ of _____ and how ____
Advantage of a Command System is ....

The mindset that the government is trusted ti meet all the needs of people
Disadvantage of a Command System is....

The lack of any incentive for people to do any more than they have to do. (North Korea)
Market
(Type of Economic System)
- Based on the freedom if individuals to own and manage factors of production as individuals or in groups
- (partnerships and corporations)
Capitalism

Market economy is also known as
Capitalism

The use of the capital and the free enterprise system
Mixed economic system

The US uses a __________ -
Mixed economic system

A blend of command and market