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Entify the disadvantages of a centrally planned economy. The government owns all the property and output equipment. Slide 10 Copyright © Pearson Education, apter 2 Section 1 Economic Goals Societies answer the three economic questions based on the importance they attach to various economic goals. Slide 57 Copyright © Pearson Education, apter 2 Section 1 Government Intervention The American government intervenes in the economy by: –Keeping order –Providing vital services –Promoting general welfare Federal and state laws protect private property. Economic systems answer key. Chapter 2: Economic Systems Section 4. Traditional economies are usually found in communities that tend to stay small and close. C. The child lacks the ability to react to a dangerous situation. Explain the rise of mixed economic systems.

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Slide 13 Copyright © Pearson Education, apter 2 Section 1 Economic Equity Economic equity is another economic goal that is defined differently in different societies. Use your answer to explain why thermonuclear weapons require regular maintenance. Slide 38 Copyright © Pearson Education, apter 2 Section 1 How Central Planning Works –In a centrally planned economy (also known as a command economy), the government, rather than individual producers and consumers, answer the key economic questions.

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Slide 44 Copyright © Pearson Education, apter 2 Section 1 Disadvantages Nations with command economies often have trouble meeting the basic economic goals. In the United States, Americans face some limitations but, in general, we enjoy a large amount of economic freedom. Who consumes these goods and services? 101 The composer and the musician on a song for the upcoming movie A.

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Slide 54 Copyright © Pearson Education, apter 2 Section 1 North Korea North Korea represents one extreme of the continuum. D. The child's sense of smell does not work properly. Incentive: the hope of reward or fear of penalty that encourages a person to behave a certain way competition: the struggle among producers for the dollars of consumers invisible hand: a term coined by Adam Smith to describe the self-regulating nature of the marketplace consumer sovereignty: the powers of consumers to decide what gets produced. Slide 58 Copyright © Pearson Education, apter 2 Section 1 American Economic Freedom The United States enjoys a high level of economic freedom. It is characterized as a free enterprise system. Explain why markets exist. Chapter 2 economic systems pdf. Despite the advantages of a free market economy, no country today operates under a pure, unregulated free market.

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The Government discouraged competition by determining prices, wages, and products. This question is largely determined by how societies distribute income. Foreign investment and free trade is encouraged –The banking industry operates under relatively few restrictions –Foreign-owned banks have few additional restrictions. Self-interest is the motivating force in the free market. Each society must decide how to divide its economic pie.

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422. criteria His consideration of a ninth intelligencethe existentialis also The. Slide 19 Copyright © Pearson Education, apter 2 Section 1 Key Terms market: any arrangement that allows buyers and sellers to exchange things specialization: the concentration of the productive efforts of individuals and businesses on a limited number of activities free market economy: an economic system in which decisions on the three key economic questions are based on the voluntary exchange in markets household: a person or group living in a single residence. According to Smith, consumers will respond to the positive incentive of lower prices by buying more goods because spending less money on a good lowers the opportunity cost of the purchase. For decision makers to understand multiple futures to frame decision making For. Scope 3 Waste to Landfill Greenhouse Gas Emissions Australia operations Scope 3. Tritium is a radioactive form of hydrogen (containing proton and neutrons) with a half-life of about years. Slide 26 Copyright © Pearson Education, apter 2 Section 1 Circular Flow Model of a Market Economy Shows how households and firms exchange money, resources, and products. The characteristics of a traditional economy. Scribe the role of free enterprise in the United States economy. There is minimal, if any, economic freedom. Slide 47 Copyright © Pearson Education, apter 2 Section 1 Key Terms laissez faire: the doctrine that government generally should not intervene in the marketplace private property: property that is owned by individuals or companies, not by the government or people as a whole mixed economy: a market-based economic system in which the government is involved to some extent. Other sets by this creator. Relationship between quantity supplied, quantity demanded and. Consumers would often wait in long lines at stores, only to discover that there was nothing to buy.

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Slide 41 Copyright © Pearson Education, apter 2 Section 1 Communism –Under communism, the central government owns and controls all resources and means of production. If a society can accurately assess what to produce, it increases economic efficiency. Amutationofaglutamicacidresiduetoalysineinanenzymeinthecellwillmostlikelydisrupt. Competition encourages innovation, which causes economic growth. Using resources widely and reducing waste. Because of competition among other firms, however, increasing sales is not always possible. Command economies oppose: –Private property –Free market pricing –Competition –Consumer choice. Slide 14 Copyright © Pearson Education, apter 2 Section 1 Economic Growth A society also strives for economic growth. Communism derived from the writings of Karl Marx who believed that labor was the source of all value but that under capitalism, all the profit created by laborers ended up in the hands of the property owners. Innovation is not rewarded and thus economic growth is stilted.

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How much will remain in years? A society's values, such as freedom or tradition, guide the type of economic system that society will have. Slide 24 Copyright © Pearson Education, apter 2 Section 1 Specialization Rather than being self-sufficient, each of us specializes in a few products or services. Slide 50 Copyright © Pearson Education, apter 2 Section 1 The Rise of Free Markets Even free market thinkers like Adam Smith recognized the need for a limited degree of government involvement in the economic marketplace. Recommended textbook solutions. Students also viewed. This preview shows page 1 out of 1 page. Mpare the mixed economies of various nations along a continuum between centrally planned and free market systems. Economic transition: a period of change in which a nation moves from one economic system to another privatization: the process of selling businesses or services operated by the government to individual investors, and then allowing them to compete in the marketplace free enterprise system: an economic system in which investments in firms are made in a free market by private decision rather than by state control. Course Hero uses AI to attempt to automatically extract content from documents to surface to you and others so you can study better, e. g., in search results, to enrich docs, and more.

Suppose a nuclear weapon contains I kilogram of tritium. Markets, like a farmer's market, a sporting goods store, and the New York Stock Exchange, eliminate the need for any one person to be self-sufficient. Every society answers the 3 basic economic questions based on its unique combination of values and goals. Distinguish between socialism and communism.

Standard of living: level of economic prosperity innovation: the process of bringing new methods, products, or ideas into use traditional economy: an economic system that relies on habit, custom, or ritual to decide the three key economic questions. Click to see the original works with their full license. Flickr Creative Commons Images. All societies must prioritize their economic goals, or arrange them in order of importance. Scribe the self-regulating nature of the marketplace. Why is China a little bit farther to the right on the diagram below than Cuba? The inevitable cost of capitalism according to Marx was the exploitation of workers and an unfair distribution of wealth. Sets found in the same folder. The marketplace operates with a limited degree of government regulation. Slide 53 Copyright © Pearson Education, apter 2 Section 1 Comparing Mixed Economies Most modern economies are mixed economies. Slide 12 Copyright © Pearson Education, apter 2 Section 1 Economic Freedom and Security Some societies limit the economic freedoms of its people.

Slide 52 Copyright © Pearson Education, apter 2 Section 1 Circular Flow Model of a Mixed Economy. The government owns both land and capital. Slide 42 Copyright © Pearson Education, apter 2 Section 1 The Soviet Union The Soviet Union became the world's first communist state in 1917 and remained so until it broke up in –Soviet economic planners sought to build power and prestige and allocated the best land, labor, and capital to heavy industry. Thermonuclear weapons use tritium for their nuclear reactions. Upload your study docs or become a. Specialization leads to efficient use of land, labor, and capital. If a child suffers from congenital analgesia, why must he or she be careful when outside playing? Firm: an organization that uses resources to produce a product or service, which it then sells factor market: the arena of exchange in which firms purchase the factors of production from households product market: the arena of exchange in which households purchase goods and services from firms self-interest: an individual's own personal gain. There is little room for innovation or change. They have a large degree of economic freedom. Competition encourages innovation, which causes economic growth –They lend themselves to consumer sovereignty. Smith called this self-regulating mechanism of the market "the invisible hand. " Economic Equity: The situation in an economy in which the apportionment of resources or goods among the people is considered fair. In Hong Kong, the private sector rules.

Analyze the societal values that determine how a country answers the three economic questions. As a society decides how to produce its goods and services, it must consider how best to use its land, labor, and capital. The complex bureaucracy of a command economy is not efficiently run and does not adjust quickly to market changes. Slide 32 Copyright © Pearson Education, apter 2 Section 1 The Customer is King in a Free Market Economy Customers have the power to decide what gets produced.

Recent flashcard sets. Choices made by individuals determine what gets made, how it is made, and how much people can consume of the goods and services produced. Terpret a circular flow model of a mixed economy. The child cannot feel pain and can suffer injuries without even knowing it.