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What is scarcity?
unlimited wants/ limited resources
Does any society have has enough resources to produce all the goods and services that people want?
What are the factors of production?
land, labor, capital, entrepreneurs
What is ceteris peribas?
everything is equal
What is elastic demand?
if you need a product and the price goes up you will pay it
Benefits must be____ to costs?
greater than or equal to
What does PACED stand for?
WHat is a traditional economy?
- based on customs, values, and traditions.
- the way it has always been done
What is a command economy?
economic system where the government commands or controls everything
What is a market economy?
individual consumers make economic decisions
What is a mixed economy?
combo of market and command
Who owns the factors of production in a traditional economy?
the people- only meet their basic needs
Who owns the factors of production in a command economy?
Who owns the factors of production in a market economy?
- privately owned
- lassiez fiare
Who owns the factors of production in a mixed economy?
private and government
How are the basic questions answered in a traditional economy?
How are the basic questions answered in a command economy?
the govt decides
How are the basic questions answered in a market economy?
each indivdual consumer and business people determine
How are the basic questions answered in a mixed economy?
individuals and government
Where are traditional economies located?
- rurual non idustrial places
- africa, asia, s america
Where are command economies located?
Where are market economies located?
none except black market
Where are mixed economies located?
- almost everywhere
- USA USA USA
What are the advantages of of a traditional economy?
everyone knows their role
What are the advantages of of a command economy?
- everyone equal
- prices low
- mobalizing resources
- everyone has a job
What are the advantages of of a market economy?
- make choices
- quality and quantity
What are the advantages of of a mixed economy?
govt regulation prevents buisnesses from cheating customers and labor
What are the disadvantages of a traditional economy?
- little to no technology
- people only meet basic needs
What are the disadvantages of a command economy?
- government produces public goods
- too much or too little
- no competition
- low quality
- few basic human rights
- little consumer choice
What are the disadvantages of a market economy?
- exploit labor
- leaves out have nots
What are the disadvantages of a mixed economy?