government and economic systems

things you use and can touch (foods, phones, cars, etc.)

goods

things someone does for you

services

traditional economy-

economic questions are answered by ____ and ____

habits

customs

traditional economy-

children work the same ___ parents worked

ex. indigenous people in the amazon rainforest or remote pacific islands

jobs

command economy-

the ___ controls the economy

government

command economy-

____ is the most common form

communism

command economy-

industry, prices, and salary set by the ___

government

able make changes quickly, provide for all people equally

advantages

lack of freedom, inefficient, no incentive for work hard or creativity

disadvantages

a free market is based on what 3 key principles?

economic freedom, competition, and private property

individuals have the right to choose

economic freedom

more than one product of goods/services insures choice

competition

individuals have the right to own their own property, including business

private property

free market is also known as ___ or a free enterprise system

capitalism

people act out of self- interest based on ____ and ___

supply

demand

mixed economy- 

no ____ is pure free market or command, elements appear in all

economy

mixed economy-

like a ___, some economies are freer and some less free

spectrum

king or queen reigns over the state, usually for life and by hereditary right

monarchy

A monarch is guided by a constitution that limits their power and responsibilities

Constitutional monarchy

People who vote to determine their laws in government

Democracy

People elect political leaders including presidents prime ministers and representatives to lead the government

republic

Economic and government system in which the government controls all property and wealth

communism

The government exerts total control over the population which has few rights or power

Totalitarian

A person rules with almost unlimited power

Dictatorship