economics: section 12.3-12.4

inefficiency

goods, jobs, and general economic functions do not work properly resulting in shortages

no market signals

scarcity and waste results when the government ignores people’s needs / wants

bad management 

government and business officials are under qualified or not motivated to succeed

ineffective reforms 

attempted changes to a weak economy, usually creating more problems

five-year plan of the Soviet union

what’s an example of an ineffective reform?

1. inefficiency

2. no market signals

3. bad management

4. ineffective reforms

list the permanent problems of control economies:

1. __________: goods, jobs, and general economic functions do not work properly resulting in shortages 

2. ___ _______ ______: scarcity and waste results when the government ignores people’s needs / wants 

3. ____ __________: government and business officials are under qualified or not motivated to succeed 

4. ________ _______: attempted changes to a weak economy, usually creating more problems (ex: Five-Year Plan of the Soviet Union)

socialism

an economic system based on government ownership and control of resources

• laws 

• reforms 

fill in the blank 

socialism is accomplished through ____ and _______

false promises

fill in the blank

socialism is ________ ________ of a better future, economy, education, etc. for all

• government aid

• government regulation

fill in the blank

with socialism, you must sacrifice freedoms, which means more ________ ____ and _________ _______

sweden 

what is an example of a country that sacrifices freedom (socialism)? 

1. health insurance

2. free

3. lower quality

fill in the blank

with the infiltration of socialism’s universal healthcare:

1. ______ _________ is considered a basic human right

2. Allowing “_____” medical coverage for all citizens 

3. Results in no incentive for doctors, understaffed, underfunded, ______ _______ care