Economic Systems Review

A set of flashcards covering the main concepts of economic systems discussed in the lecture notes.

Economic System

The way a society produces, distributes, and consumes goods and services.

Economic Questions

What to produce? How to produce? For whom to produce?

Traditional Economy

An economic system where questions are answered by customs, habits, and traditions.

Command Economy

An economic system where the government answers all basic economic questions.

Advantages of Command Economy

Ability to act quickly in emergencies and provide for all people equally.

Disadvantages of Command Economy

Inefficient, with no incentive for citizens to work hard or be creative.

Free Market Economy

An economic system wherein individual buyers and sellers answer economic questions.

Supply and Demand

Economic concept where the sellers produce what buyers are willing to buy.

Free Enterprise

Another term for a free market economy, emphasizing profit and individual choice.

Mixed Economy

A blend of free market and command economies, with government regulations.

Government Regulation

Government's involvement in setting rules, wages, and worker conditions.

Pizzeria in a Free Market

Owner answers economic questions based on customer input and profit motives.

Pizzeria in a Command Economy

The government owns and operates the pizzeria, controlling all aspects.

Pizzeria in a Mixed Economy

Both the owner and the government share responsibilities in economic decision-making.