Econ Unit 1 Review

traditional economy

economic, distribution of scarce resources is determined by ritual, habit, or custom. everyone knows what role to play but there’s no diversity

command economy

economic, government controls, which can lead to quick change in a short amount of time. basic education, & public health available at little to no cost

free market economy

economic, individual freedom for everyone, lack of government interference. variety of goods & services

capitalism

resources are privately owned, we own our own business. keep profits & take risks

socialism

government directs economy, controls big stuff (like healthcare) everyone gets a fair share

communism

government controls all property, no one can be too poor or too rich (no individuality)

economic freedom

individuals make their own choices on what they buy, business owners make their own prices

economic efficiency

be resourceful with scare items

economic equity

fairness in the economy, equal opportunities

economic security

protects citizens who are unable to work like unhealthy, elderly, disability, etc

full employment

job opportunities for people who are willing & able to work

price stability

consistent level of prices for goods

economic growth

expansion of goods & services over time

voluntary exchange

buyers & sellers willingly engage in the market

private property rights

incentive to work & improve living standards, people take good care of their own property

profit motive

driving force encourages people to improve material well being

competition

struggle against other sellers to attract consumers, whiling lowering costs