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- History And Political Science 4th/7th Periods
- Wilkinson
- Janea Chapter2 Capitalism and the Market Economy
Janea Chapter2 Capitalism and the Market Economy
History And Political Science 4th/7th Periods with Wilkinson at East Marion High School
About this deck
By: Janea Burton
Created: 2011-01-21
Size: 37 flashcards
Views: 41
Created: 2011-01-21
Size: 37 flashcards
Views: 41
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Economic System
way a nation uses its resources to fulfill its people's needs and wants.
Nations
develop most economic systems in order to determine how to use their resources to fulfill the wants and needs of their citizens most efficiently.
Factors of Production
resources used to produce goods and services.
Factors of Production
Land: the geographic territory and natural resources of a nation
Labor: people who produce goods and services
Capital: not only money but also the machinery, tools and buildings used to produce other goods and services
Technology: application of knowledge to production
Standard of Living
quality of life that the people enjoy
Standards of Living People enjoy
Land, Labor, and Capital are basic to a nation's standard of living. These factors of production determine to a large degree what a nation will produce and how its people will live.
Technology
influences the development and efficiency of production by applying research and knowledge to each of the factors.The use of new methods has greatly increased the efficiency of the nation's work force.
Capitalism
Economic system in which individuals rather than the government make the decisions about the way goods and services are produced, distributed, and used.
Laissez-faire
govenment should not interfere in economic activites
French term
Laissez-faire
Pure Capitalism
capitalistic economic system in which there is no governmental control of the economy.
Modified Capitalism
capitalistic system with some governmental controls
3 basic freedoms
Private enterprise
Private property
Freedom of Choice
Private enterprise
freedom people have to start and operate their own businesses
Private Property
people have the right to own property
Freedom of Choice
businesses have the freedom to choose which goods and services to produce and where to set up their activities.
4 major groups of a Capitalistic Economy
Entrepreneurs
Managers
Workers
Consumers
Entrepreneurs
person who organizes and manages a business undertaking
Managers
people responsible for operating a business
Workers
people employed to do the physical or mental work necessary to produce goods and services
Consumers
individuals who buy and use goods and services
Command Economy
government makes the decisions about what to produce, how much to charge, and how much to pay workers
Market Economy
producers and consumers, through a system of markets and prices, make the decisions about the use of the economic resources
Market
places and situations in which people buy and sell goods and services
Competition
rivalry between producers and between sellers of goods and services for business
Profit
firm's earning after it has paid all expenses
Economic benefits of Competition
it may lead to the development of labor-saving machines or to improved products and services because a business will be able to compete only if it outdoes its competitors in efficiency
Pure Monopoly
maket in which there is only one seller of a product
4 Ways Pure Monopoly can be created
Natural Monopolies:one large company can provide less expensive services than many small ones; one company owns all or most of the raw materials used to make a product; when a company or inventor has a patent; a company is well est.
Oligopoly
market in which a few sellers provide most of the goods and services
Monopolistic Competition
many sellers in hte market, each producing advertised differentiated goods and services
Pure Competition
many independent sellers, each offering its goods and services in the same way
Nonprice Competition
serves a way to differentiate the firm's product
Land
Geographic territory and natural resources of a nation
Labor
People who produce goods and services
Capital
not only money but also machinery, tools and buildings used to produce other goods and services
Technology
Application of knowledge to production
About this deck
By: Janea Burton
Created: 2011-01-21
Size: 37 flashcards
Views: 41
Created: 2011-01-21
Size: 37 flashcards
Views: 41
About StudyBlue
STUDYBLUE makes things that make you better at school.
Things like online flashcards with photos and audio.
Things like personalized quizzes and friendly reminders about when (and what) to study next.
Think of it as a digital backpack™: access to all of your study materials online and on your phone.
STUDYBLUE exists to make studying efficient and effective for every student, for free. Join us.
“Simply amazing. The flash cards are smooth, there are many different types of studying tools, and there is a great search engine. I praise you on the awesomeness.”
Dennis
Dennis