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Cards In This Set
| Front | Back |
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4 Types of Economic Systems
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-traditional
-command
-market
-mixed
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Traditional:
-economic decisions based on...
-____ is discouraged
-____standard of living
-passed down from gen to gen
-examples:
|
Customs and beliefs
change
lower
aborigines (australia) & Inuits (northern canada)
|
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Command:
-Economic decisions....
-____ owns _____
-____ is _____
-examples:
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-are made by government
-government owns factors of production
-consumer choice is limited
-China, Cuba, North Korea
|
|
Market System definition
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An economic system in which people and firms act in their own best interest to answer the economic questions
|
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Market:
-economic decisions made by...
-little _____ to...
Examples:
|
-individuals
-little incentive to engage in unprofitable ventures
-U.S., Japan, Germany, South Korea
|
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Mixed System Definition
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System combining characteristics of market and command economy
|
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Most countries of the world have _____
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Mixed economy
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Economic system
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An organized way in which a society provides for the wants and needs of its people
|
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A market economy in which private citizens own and operate factors of production
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Capitalism
|
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Capitalism:
-____ are free to...
-examples:
|
-individuals are free to direct resources into activities that promise greater profits
-ex. US, Japan, Singapore
|
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Many of the basic resources and industries are owned and operated by the government
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Socialism
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Socialism:
-economic decisions...
-__ provides....
-Examples:
|
-mostly made by government
-govt....free medical care, education, unemployment benefits, financed by taxes
-France, canada, sweden, great britain
|
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Communism:
-resources...
-___ type economy
-examples:
|
-most-to-all resources are govt operated & owned
-rigid-command
-North korea, china, former soviet union
|
|
-considered father of modern communism
-wrote _____and ___, both of which...
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Karl Marx
-communist manifesto & Das Kapital
...criticized capitalism
|
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Marx argued that....
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The oppressed workers would eventually rise up & overthrow owners of the factors of production
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