Economic Concepts and Choices
Unlock all answers in this set
Unlock answersquestion
What involves making economic choices based on customs?
answer
Traditional economy
question
What involves having the government make most economic decisions?
answer
command economy
question
What is based mainly on individual choice?
answer
Market economy
question
What is an advantage of traditional economy?
answer
little disagreement over economic goals
question
What is a disadvantage of a traditional economy?
answer
Does not ensure maximum productivity
question
What is another term for command of property?
answer
Centrally- planned economy
question
What allows no private ownership of a property?
answer
Communism
question
Who wrote an economic study called Capital?
answer
Karl Marx
question
What is an advantage of a command economy?
answer
The economy attempts to provide for everyone
question
What nation has a command economy?
answer
North Korea
question
means " leave" things alone
answer
Laissez faire
question
the idea that consumers are free to buy what they want
answer
consumer sovereignty
question
market for goods and services
answer
product market
question
Market for factors of production
answer
factor market
question
financial gain from a business transaction
answer
profit
question
involves concentrating efforts in a certain area
answer
specialization
question
The foundation of Market economies
answer
competition
question
Simplified representations of complex economic activities are called economic
answer
Models
question
PPC is an acronym for production possibilities curve
answer
PPC is an acronym for
question
technology is fixed
answer
When creating a PPC, economists assume that technology is fixed
question
The condition in which economic resources are not being used to their full potential is called
answer
underutilization
question
impossible to meet because resources are fixed
answer
Any point outside the curve of a PPC represents a goal that is
