Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.



Published on

  • Be the first to like this


  1. 1. Name: Paul Zuo 2.01 Key Terms Blank Understand Economics and Economic systems Term Definition Economics Terms Economics Terms Economics studies how individuals and societies seek to satisfy needs and wants through incentives, choices, and allocation of scarce resources Scarcity shortage of resources Capital Resources used to produce goods and services, buildings, materials, and equipment Natural Resources raw materials found in nature that are used to produce goods, Lumber, Oil Human Resources people’s knowledge, efforts, and skills used in their work, Education, Training, Skills Entrepreneurial recognize the need for new goods or service, Kindle, IPod, IPhone, Pre Phone Resources Types of Economies Types of Economies Command economy The government determines what, how, and for whom goods and services are produced. Market economy Free Market Economy, United States is Close Socialist economy produce for use rather than profit Mixed Economy Combination of a market and a command economy
  2. 2. Traditional Economy people have specific roles; security in the way things are done. assigned stuff Class: Characteristics Traditional Market Command Mixe Who makes the dont change people government mixed economic decisions? What is the none nothing controlling taking government's role in the economy? What motivates tradition profit motive giving the people needs profit the economy? and wants How are everyone does a specific resources are sold,brought, controls everything and the pe resources job and controlled by people uses everything. resour allocated? Is the level of low highest none High competition high or low in the economy? List examples of central african countries none Cuba, North Korea China countries with this Englan type of economy. List characteristics for each type of economic system by answering questions in the left column for each type of economic system. 2.01 Comparing Economic Systems
  3. 3. Name: Paul Zuo :P Command Economy • Advantage: • Guarantees equal standard of living for everyone • Less crime and poverty • Needs are provided for through the government • Disadvantage: • Minimal choices, Fewer choices of items • No incentive to produce better products MARKET ECONOMY • Advantage:competition to have the best products and services • Disadvantage:huge rift between wealthy and poor
  4. 4. G l o b a l E c o n o m i c S y s t e m s Mixed Economy • Advantage:balance of needs and wants met by government and in marketplace
  5. 5. • Disadvantage:citizens have to pay taxes Traditional Economy • Advantage:people have specific roles; security in the way things are done • Disadvantage:Technology is not used; difficult to improve 2.01 Comparing Economic Systems Name: Page 2 1. Name some similarities between Command and Traditional economic systems. trational economy is an economy system in which resources are allocated by inheritances...and command economy is runed in a different way 2. Name some similarities between Command and Mixed economic systems.
  6. 6. Men and women are given different economic roles and tasks 3. Name some similarities between Market and Traditional economic systems. They both have some weak spots in traditionallsness yessss ilyy 4. Name some similarities between Market and Command economic systems. some similarities are that they both have producers and consumers, goods and services, and also money and labor. 5. Name some similarities between Market and Mixed economic systems. Market and mixed exconomies both let businesses and people satisfy wants while the government solves needs in a mixed economy. In a pure economy the businesses take care of needs as well.
  7. 7. 6. In addition to all these being Global Economic Systems, name one major similarity in all systems. In all systems somebody has to take care of the wants and needs of the people.