Economic Systems Vocabulary
Jeopardy!
Economic
Systems…
3 Fundamental
Questions and
more…
Traditional
System
Components
Capitalism
Miscellaneous
Economic Vocab
Words & Ideas
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The answers to the 3
fundamental questions of
economics determines this…
What is the type of economic
system?
In this type of economy the three basic
economic questions are answered
according to tradition. Generally, people
do what their ancestors did. They tend to
be primarily agricultural. They usually
center around the family or tribal
unit.
What is Traditional Economy
An economic system in which people own their own goods
and property. Some people invest their money in different
ways of producing things, or in distributing goods so that
they may gain a profit- what remains after the costs of
running the business are paid. In a __________________
system, people are free to produce whatever they wish and
to buy whatever they can afford. The three basic economic
questions are answered by the inter-play between
consumers (buyers) and producers (sellers)…
What is the Free
Enterprise/Capitalism/ Free-market
Economic system
An economic system in which all important
economic decisions are made by government
leaders. These leaders decide what, how, and for
whom goods and services will be produced. The
way goods are produced and distributed is
controlled by government leaders for the good of
society as a whole. Government officials develop
national plans, often for five-year periods, that
specify which goods each factory will make.
What is a Communist
Economic System
an economic system in which the most
important businesses producing goods
(mines, factories, some businesses) are
owned by the government rather than by
individuals. The government encourages
private ownership of small businesses
(such as shops and small manufacturers).
What is a Socialist Economic System?
“What should be produced?” is
the _________________
What is the 1st fundamental question of economics.
“How should it be produced?” is
the _____________
What is the 2nd fundamental question of economics
“Who gets what is produced?” is
the ____________
What is the 3rd fundamental question of economics
the study of how people meet
their basic needs…
What is Economics?
People who study economics are
known as…
What are economists?
In a traditional economy people
meet their basics needs as
_________ had done.
What are their ancestors?
When almost everything grown is
intended for use by the family or
village & there is rarely a surplus, so
very little is sold or traded is known
as…
What is Subsistence Agriculture?
When people use their spare time in their
home to weave cloth, make furniture and
clothes, and to produce other goods by hand.
These industries help farmers and their
families meet their needs, and may give them
extra income during the winter months when
there is little work on the farm.
What is a Cottage Industry?
These two terms determine what
should be produced, how it should
be produced, and for whom in a
traditional economy….
What are Custom and Tradition?
When the family or village owns
most goods there can be said to be a
lack of ….
What is private property?
The belief that people have a right
to own property…and use this
property as they see fit with little
government interference.
What is private property?
In a capitalist economy prices are
determined by
the forces of…
What are Supply & Demand?
Farmers grow food not just for themselves, but in
order to sell it to others for cash; crop production is
intended for distribution to wholesalers and
retailers, such as supermarkets and grocery stores.
Large-scale ___________ agriculture makes
production cheaper…
What is Commercial Agriculture?
When goods are manufactured in
factories for sale throughout the
country or overseas…
What is Commercial Industry?
The money that remains after the
costs of running the business are
paid…
What is profit?
Things that people make; for example,
foods, toys, clothes, cars and houses are
all considered goods…
What are goods?
Things that people do for others. People
who provide _______ include electricians,
teachers, plumbers, barbers, doctors, and
auto-mechanics…
What are services?
Communism was developed in the 1800s by… He
believed that business owners used their wealth to
take advantage of workers by taking away most of
the value of what they produced. He predicted that
the conditions of workers would grow so bad that
they would eventually rise up and overthrow their
capitalist rulers in a violent revolution. After the
revolution, workers would establish an equal society
and live in perfect harmony, under what he called
"communism."
Who is Karl Marx?
When no economy totally follows
anyone economic system, most
countries have economies that
blend features of each.
What are Mixed Economies?
The problem created because people
usually have unlimited wants, but a society
can produce only a limited number of
things at any one time…
What is the Problem of scarcity?