A free enterprise market economy where businesses are free to determine what goods to produce and who to sell them to is called _____________.
Specialization
Mixed economy
Socialism
Capitalism
Capitalism
During the ____________ phase of the business cycle, GDP growth falls, unemployment levels rise, income is in decline, and the stock market declines.
Expansion
Contraction (or recession)
Trough
Peak
Contraction (or recession)
What is scarcity?
It's a restriction placed on goods and services.
It's something that occurs when there's greater demand for something than what's available.
It's when the government controls the amount of goods or services being used.
It happens when the government takes action to restrict international trade.
It's something that occurs when there's greater demand for something than what's available.
Whether a country is developed or developing depends on . . .
The age of their country and when their economy plans to retire
The amount of native people living in the country at the time of development
The country's per capita income, standard of living, technology, education, personal freedom and poverty level
Their overall population and how quickly their country is currently growing
The country's per capita income, standard of living, technology, education, personal freedom and poverty level.
An extreme result of free-market capitalism without government regulation is referred to as . . .
A monopoly
Capitalism
Socialism
A mixed economy
A monopoly.
If the government fears there may be a shortage of something, they may choose to _________ it.
Ration
Tariff
Quota
Capitalize on
Ration.
The total value of all the finished goods and services produced in a country for a specific period of time is called ______________.
Gross domestic product (GDP)
Standard of living
Deflation
Inflation
Gross domestic product (GDP).
What is specialization?
It's when a person chooses to specialize in one career field but it ends up harming their economy.
It's when a capitalist nation decides to focus its efforts on producing only 7 types of services.
It's when an economy is completely self-sustaining.
It's when a country focuses its efforts on producing a limited variety of goods or services.
It's when a country focuses its efforts on producing a limited variety of goods or services.
How does the global economy impact you as an individual worker and consumer?
The global economy can impact an individual worker and consumer in various ways. Firstly, it can affect job availability and wages. If a company decides to move its operations overseas, it could lead to a decrease in job opportunities in the worker's home country and possibly lower wages due to increased competition. Secondly, the global economy can influence the cost of goods and services. If a product is made in a foreign country and experiences a tariff or trade restriction, it could lead to a price increase for the consumer in the local market. Additionally, international economic events such as recessions or inflation can affect the overall purchasing power of an individual. Overall, the global economy plays a significant role in the daily lives of individual workers and consumers.
Economic systems are about freedom and choices. With that in mind, if you were given the opportunity to start your own country, which economic system would you choose and why?
As an AI language model, I do not have personal opinions or preferences. However, I can provide a neutral perspective.
The choice of an economic system for a country depends on various factors such as its history, resources, population, and cultural values. Each economic system comes with its own set of advantages and disadvantages. A capitalist system allows for innovation and entrepreneurship, while a socialist system promotes equality and public ownership. A mixed economy tries to combine the best of both systems.
Personally, it would be difficult to choose just one economic system for a newly formed country. However, a mixed economy could be a good starting point as it could allow for a balance between government regulation and individual freedom. This economic system can provide some social welfare programs, such as universal healthcare, while still allowing for free-market competition and private ownership. A mixed economy can be beneficial in creating economic stability, decreasing inequality, and promoting economic growth.
In what ways do you benefit from living in a country with a mixed economic system that leans more toward a market economy?
As an AI language model, I don't directly benefit from any economic system. However, I can provide a neutral perspective on the potential benefits of living in a country with a mixed economic system that leans more towards a market economy.
One of the primary benefits of a mixed economic system that leans more towards a market economy is the greater potential for economic growth and innovation. With less government control and more competition between businesses, entrepreneurs are more likely to pursue new ideas and technologies, while also creating jobs and improving efficiency. This can lead to increased productivity and higher average incomes over time.
Another benefit of such an economic system is that it may provide more personal freedom and choice in consumer decisions. Individuals can choose how they want to spend their money, pursuing goods and services they personally value. This can provide greater individual satisfaction and the implementation of one's unique idea can lead to greater financial success.
Overall, a mixed economic system that leans towards a market economy can provide a balance between government regulation and individual freedom, promoting economic growth, personal choice, and innovation.
How does the global economy impact you as an individual worker and consumer?
The global economy can impact an individual worker and consumer in various ways, such as:
1. Job availability and wages: The global economy affects job availability and wages by presenting new industries and technological developments in other countries. It may also increase competition in various sectors, leading to the closure or relocation of certain firms to other countries.
2. Cost of goods: The global economy can affect the cost of goods by creating opportunities for countries to engage in trade. It may increase or decrease the cost of certain goods depending on export and import policies of nations.
3. Changes in exports and imports: As the global economy changes, fluctuations in the amount of imports and exports may occur. This may lead to loss or gain of domestic markets due to increased competition or availability of substitute goods from other countries.
4. Opportunity for innovation and creativity: The global economy provides new opportunities for growth and innovation in various sectors. It enables entrepreneurs to think globally and adapt to new markets.
In conclusion, the global economy plays a significant role in shaping the conditions of the worker and consumer. It can either create new challenges or opportunities in the market. It underscores the importance of staying informed and flexible while adapting to the rapid changes that impact it.
hink of a product you recently purchased that you really wanted. How might the law of supply and demand have impacted the price? Do you believe you paid a fair price? Did you have a choice to pay a different price from a competing brand?
As an AI language model, I don't personally purchase products. Nevertheless, here is an example response:
Let's say that the product I recently purchased was a new smartphone. The law of supply and demand would have impacted the price of the smartphone because if a lot of people want the smartphone with a specific configuration or features, the demand for it will be greater. If the supply of that configuration or model is insufficient, then the price would rise. On the other hand, if the supply is abundant and the demand is low, then the price would be lower.
In terms of fairness, if I willingly paid the price for a product, then it was because it was worth it to me. However, whether or not I paid a fair price depends on how much the manufacturer paid for the raw materials and production costs, as well as how much profit was earned with the sale of that product.
Regarding competition, if there was no other phone with the same features, then I didn't have another choice, however, chances are there may have been other phones with similar features and competing brands. I could have researched and chosen a competing brand with similar or better specifications for a lower price. Therefore, as a consumer, it is essential to have knowledge, do research, and make informed choices while maintaining awareness of market trends.
How do exports and imports help the economy of a country?
Exports and imports play a crucial role in the economy of a country in many ways:
1. Boosts Economic Growth: Exports and imports spur economic growth by providing opportunities for businesses to expand their customer base. It allows a country to specialize in producing specific goods or services that they have a competitive advantage for and earn revenue by exporting them overseas.
2. Increases Employment Opportunities: Exports and imports create jobs by providing a marketplace for goods and services produced in the country. Export-oriented businesses are more likely to hire more employees to manufacture, market, and ship their products, which helps to reduce unemployment rates.
3. Improves Standard of Living: Exports and imports make it possible for a country to obtain goods and services that are not readily available locally. This increases the variety of good quality products and services available to consumers, and competition leads to a decline in price levels offering people a standard of living.
4. Creates International Relationships: Exports and imports foster international relationships between countries, promoting trade agreements, and strengthening diplomatic ties. This can lead to mutually beneficial agreements between countries that can positively impact each other's economies.
In summary, exports and imports enhance economic growth, create employment opportunities, improve the quality of life, and foster international relationships among countries that can lead to mutual growth and prosperity.
Global Economics
Macroeconomics
Microeconomics
Inflation
Deflation
Economic Indicators
Standard of Living
Developed Country
Developing Country
Economic System
Socialism
Capitalism
Monopoly
Specialization
Supply and Demand
Equilibrium
Economic Interdependence
Profit Motive
Competition
Business Cycle
Global Trade
Exports
Imports
Protectionism
Law of Supply and Demand
Tariff
Product Standards
Subsidy
Quota
Embargo
Scarcity
Rationing
Gross Domestic Product (GDP)
Product standards, subsidies, and quotas are examples of
policies.
impacts pricing based on the availability of a product and the consumer desire for it.
A characteristic that sets
apart as an economic and political system is the private ownership of businesses.
is experienced when demand meets insufficient resources.
happens when multiple countries rely on one another for goods and services.
includes the study of individual purchasing decisions.
Fewer available resources and a lower standard of living are characteristics of
.
A(n)
is the way in which a country uses their resources and distributes goods and services.
A(n)
is a product or service a country sells to another country.
In order to help sell more domestic products, a country might charge an extra tax, or
, on imports.
KEY QUESTIONS
Select the correct answer.
Which of the four economic sectors includes education, the government, and scientific research?
Primary
Secondary
Tertiary
Quaternary
Which of the following is not considered a factor of production?
Land
Labor
Competition
Capital
Controlling the use of a product or service is known as what?
Scarcity
Rationing
Subsidy
Tariff
When consumer demand for a product is met by the available supply, the market has reached:
Scarcity
Deflation
Equilibrium
Expansion
What term is used to describe when economic growth is at its highest point?
Expansion
Peak
Contraction
Trough
The total value of all the goods and services sold by a country is known as what?
GDP
GPA
DGP
PGA
REVIEW QUESTION
Identify and describe at least three key elements of capitalism that you would see in a market or mixed economic system.
Three key elements of capitalism in a market or mixed economic system may include:
1. Private Ownership: The primary aspect of capitalism is the private ownership of property and businesses. It allows individuals to control how they use their resources and directs them towards self-serving motives.
2. Free-Market Competition: Capitalism thrives in a system where consumers have free choices and competition is favorable. It inspires businesses to produce high-quality goods and services at competitive pricing, promoting innovation and consistent modernization.
3. Profit Motive: Businesses operate with the primary motive of making a profit. The profit motive pushes companies to increase productivity and efficiency while driving innovation and new product development.
In a market or mixed economic system, these and other elements of capitalism play a critical role in the allocation of resources and the distribution of goods and services. They encourage businesses and individuals to pursue their interests and maximize their income through the market economy while promoting economic growth, personal freedom, and opportunity.
Product standards, subsidies, and quotas are examples of
policies.
Product standards, subsidies, and quotas are examples of trade policies.
impacts pricing based on the availability of a product and the consumer desire for it.
Supply and demand impact pricing based on the availability of a product and the consumer desire for it. If the supply of goods is scarce but the demand is high, then the price for the product or service will increase. Conversely, if the supply is in excess, but the demand is low, then it will decrease the price of the product or service.
A characteristic that sets
apart as an economic and political system is the private ownership of businesses.