economic systems
Terms
undefined, object
copy deck
-
study of how a society uses its recources to meet its needs
study of choice - economics
- a source of supply or support
- resources
- human resources
- people - labor or work effort exerted in production
- capital resources
- used for production of other goods (tools)
- needs and wants are greater than resources availiable
- scarcity
- resources provided by nature
- natural resources
- traditional economy
- use traditions from the past for production. decisions are based upon costoms and the past.
- market economy
- basic economic questions are answered by the people and business. buyers and sellers come togheter to exchange goods and services
- the basic economic questions
-
what will be produced
how will it be produced
for whom will i be produced - we use certain tools to evaluate economic systems
-
GDP/GNP
literacy rate
life expectancy
infant mortality rate
per capita income - command economy
- all decisions are made by the government. individuals have little control or influence over the way the economic questions are answered.
-
hunters and gatherers
often nomadic
egalitarian society - traditional economy
-
public ownership of all resources
gov't decides what will be produced by who and for whom
emphasis on heavy industry at the expense of consumer products - command economy
-
self interest
profit motive
profit ownership of means of production
open competition
supply and demand - markey economy
-
decisions are made by gov't
decisions are made mainly by individual households and businesses -
PUBLIC SECTOR
PRIVATE SECTOR