economic unit 1 flashcards

traditional characteristics

use of scare resources, ritual, habits, customs, roles defined by the customs of ancestors/ elders (not free to make their own choices)

traditional examples

inuit northern Canada - do the same thing your elders did (teach kids how to survive harsh weather, fishing , hunting) those who killed big get to choose the food first and non hunters get it last

traditional advantages

everyone knows their role, follow customs, do the same as your parents (producing and making) born into hunters / farmers = hunters/ farmers

traditional disadvantages

discourage new ideas and new ways of doing things, lower standard of living and economic stagnation

command characteristcs

central authority makes major choices, headed by king, dictator = making choices

command examples

north korea

command advantages

change direction dramatically, most people gets good and services that they usually cant (free healthcare)

command disadvantages

leaders provide for themsevles at the cost of the economy, lost of individual freedom, produce lower quality goods, larger decision making bureearcracy, slow desciion making, rewards for individuals initiatives are rare, bueraucracy lacks with ability to deal with issues, stays smaller cus its harder to grow

market characteritistcs

great deal of freedom, business decides what they want and people vote for what they want, promote resources

market examples

canada, britian, us, Japan, west Europe, austraila, singapore

market advantages

individual freedom, adjusts over time, little gov interference, decentralized (people make choices) different goods and servies produced, increase consumers satisfaction, goods privately owned

market disadvantages

doesn’t provide for those who can’t make money, may not provide enough basic goods, increase uncertainty (markets scared they will go buy from someone else)