Economic Systems - Warren County Schools
... Robert Owen thought that for the good of all, society or the government, instead of
individuals, should own property and control industry
Efforts of Owens and others who agreed led to a movement called social democracy
The American Economic System
... the driving force of capitalism, the
ability to accumulate wealth
Competition – (the regulator) the
struggle between buyers and sellers
to get the best products at the best
... • When demand is high prices go up
• When production is higher than
demand prices go down
... *Capitalism: an economic system in which private citizens own land, property, and business; characterized by
a free competitive market motivated by profit
*Communism: a type of government in which a single party holds power and the government controls the
economy; classes are abolished and property ...
Introduction to Global Marketing
... Total opposite of market capitalism (ex: North Korea)
State plans and decides what goods and services are
produced and in what quantities
Consumers can spend on what is available
Economic systems Anticipation Guide
... 1. ______In this economic system, decisions are made by private citizens with no government
2. ______Someone who is willing to take a risk to begin a new business
3. ______Factories, machinery, and technology available in a country
4. ______Producing those goods a country can make most e ...
... When companies are owned by just one person they are sole
They have expenses because they must pay their workers and all
the raw materials as well as the machinery they need for their
Their income is obtained by selling their products in the market
or by offering so ...
... The organized way a society provides goods and services to meet the needs and wants of its citizens.
System in which habits, customs, and religion are the reasons for making economic
Subsistence: people make goods for themselves and their families. There is little
surplus. To subsist is t ...
Study Guide (Use your notes and chapter 2 in the book) This is a
... 1. What are the 3 key economic questions?
2. March the following characteristics to the correct economic system (command/traditional/market)
- government owns factors of production
- Strong family ties
- Based on voluntary exchange
- Businesses are privately owned - Limited choice among ...
The economic problem
... • A market is the institution through which buyers and
sellers interact and engage in exchange.
Mobilization of Bias
... firms, retail chains, utilities, high-tech companies, media
companies, and corporate law firms
Need: basic requirement for survival
... Production Possibilities Curve: illustrates opportunity costs; diagram
representing various combinations of goods &/or services an economy can
produce when all productive resources are fully employed.
Specialization and voluntary exchange b/w buyers + sellers increase mutual
Division o ...
I. Economic Systems 1. Fill in the chart with a definition and an
... 24. What is foreign exchange, and why does international trade require a system for exchanging currencies?
Directions: Complete the following for government review of SW Asia.
1. What are the two types of Autocratic governments?
2. What are the two types of Democratic governments?
3. How is the lead ...
ECON 202 - Quiz One
... What do economists mean when they state that a good is scarce?
The amount of the good that people would like to have exceeds the supply that is freely available
The expression, "There's no such thing as a free lunch" implies that
costs are incurred when resources are used to produce goo ...
American Political Economy
... 0 10% of households own 80% of stock
0 Corporate elite = white and male
0 Capitalist class cohesion
0 Social clubs, interest groups/peak associations,
0 Small group (vast income and wealth) own America’s
Economy Part II
... to be met, found in unlimited governments
•Free Enterprise (market)– consumers decide what to produce
and purchase, prices are determined by supply and demand,
found in limited governments
• Socialism (mixed)- some businesses and industries are
controlled by the government; government provides many
Slide 1 - mebranding
... The Wealth of Nations. The book identified land, labor, and
capital as the three factors of production and the major
contributors to a nation's wealth. In Smith's view, the ideal
economy is a self-regulating market system that
automatically satisfies the economic needs of the populace.
He described ...
Economy - Ch 3
... Based on the 1848 publication 'Communist Manifesto' by two German political
philosophers, Karl Marx (1818-1883) and Friedrich Engels (1820-1895), it envisioned
common ownership of all land and capital and withering away of the coercive power of
the state. In such a society, social relations were reg ...
What is an economic system?
... o Markets for commodities, labour, finance, production of goods etc.
Responses to capitalism:
Classical Political Economy:
o Capacity of an economic system based on market exchange
o Capitalism generates inequality, conflict, crises
o Free markets produce ef ...
Can a Wildly Successful Economic System like
... The multinational corporation...puts the economic decision beyond the
effective reach of the political process and its decision-makers, national
The payment of the worker is not determined by the value of his product.
The tendency of advanced capitalism ha ...
Economic democracy or stakeholder democracy is a socioeconomic philosophy that proposes to shift decision-making power from corporate managers and corporate shareholders to a larger group of public stakeholders that includes workers, customers, suppliers, neighbors and the broader public. No single definition or approach encompasses economic democracy, but most proponents claim that modern property relations externalize costs, subordinate the general well-being to private profit, and deny the polity a democratic voice in economic policy decisions. In addition to these moral concerns, economic democracy makes practical claims, such as that it can compensate for capitalism's inherent effective demand gap.Classical liberals argue that ownership and control over the means of production belongs to private firms and can only be sustained by means of consumer choice, exercised daily in the marketplace. ""The capitalistic social order"", they claim, therefore, ""is an economic democracy in the strictest sense of the word"". Critics of this claim point out that consumers only vote on the value of the product when they make a purchase; they are not participating in the management of firms, or voting on how the profits are to be used.Proponents of economic democracy generally argue that modern capitalism periodically results in economic crises characterized by deficiency of effective demand, as society is unable to earn enough income to purchase its output production. Corporate monopoly of common resources typically creates artificial scarcity, resulting in socio-economic imbalances that restrict workers from access to economic opportunity and diminish consumer purchasing power. Economic democracy has been proposed as a component of larger socioeconomic ideologies, as a stand-alone theory, and as a variety of reform agendas. For example, as a means to securing full economic rights, it opens a path to full political rights, defined as including the former. Both market and non-market theories of economic democracy have been proposed. As a reform agenda, supporting theories and real-world examples range from decentralization and economic liberalization to democratic cooperatives, public banking, fair trade, and the regionalization of food production and currency.