THE SCIENCE OF ECONOMICS Economics is the social science
... Such analysis includes the theory of supply and demand. It also examines market structures, such
as perfect competition and monopoly for implications as to behaviour and economic efficiency.
Analysis of change in a single market often proceeds from the simplifying assumption that
relations in other ...
19th Century Economics
... control of the means of
distribution of products is
in the hands of private
corporations who operate
these businesses for
• Evolved out of statesponsored mercantilism
... ECONOMIC AGENTS
People, human groups, and institutions must work
together so that economy works. They are the
economic agents or actors
BUS101 A.Lynch Quiz - Ch. 2
... 25. Michael has inherited $500,000 from the sale
of a family business. His banker is advising he
find multiple banks to deposit his money. Why?
a) The Open Market Operations of the
Federal Reserve would invest his money in
other securities and might lose it without
needing to justify the expenditure ...
... Economic systems are the social institutions through which goods and services are produced, distributed, and
consumed to satisfy people’s wants in the most efficient possible way. Natural capital, human capital, financial
capital, and manufactured capital all comprise economic resources, which must ...
Slide 1 - mebranding
... automatically satisfies the economic needs of the populace.
He described the market mechanism as an "invisible hand"
that leads all individuals, in pursuit of their own selfinterests, to produce the greatest benefit for society as a
whole. Smith incorporated some of the Physiocrats' ideas,
... Economics Unpacking----------draft 6/28/07
Economics 1a- Microeconomics
Need to know:
Terms: personal economic choice, potential costs and benefits, market/
capitalism/ free enterprise, scarcity, production, distribution, consumerism,
competition, efficiency, personal taxes, monopolies, deregulati ...
1920`s Business Boom
... What is a Consumer Economy?
An economy that depends on large amounts of ________________ by individuals
What type of monetary habit did Americans traditionally value?
• ________________ (buy only what you need and save your money)
What Changes in the 1920’s led to Americans buying more “stuff”?
What is an economic system?
... Dominance of financial transactions
o Buying & selling commodities via exchange
Private ownership of capital
o PP = social institution that gives rights to individuals or firms
• The means of production used to make profit
• Owner has property right to determine use
• Owner has right to obtain prope ...
A SUMMARY OF THE HISTORY OF ECONOMIC THEORIES Mgt. 704
• It was a reaction to Mercantilism that viewed a positive
balance of trade as the primary goal of government.
• It presents a systematic approach to economic activity
based on people acting in their self-interest, thereby,
producing self-regulating markets (the invisible hand).
• The wea ...
How has the Constitution shaped the economic system in the United
... Market brings buyers & sellers of a particular good or
service into contact with one another
Sellers & buyers are registered on the supply & demand
sides of various markets
The prices participants in markets pay revise their free
choices in furthering their self-interests.
Study Guide (Use your notes and chapter 2 in the book) This is a
... 12. What are the goals of the American economy?
13. What is the role of government in our free enterprise
14. How do freedom of enterprise and freedom of choice
apply to the American economy?
15. What roles do private property, the profit incentive,
and competition play in the American econ ...
Macroeconomic Issues - University of Nevada, Reno
... • Voluntary exchange in markets is how modern economies like
the United States determine which goods and services to
produce to satisfy the vast number of consumers.
• Voluntary exchange means both parties get something they
want; a worker wants income and a firm wants a certain job
done, for exampl ...
Lesson 2.1 Worksheet
... Fill in the diagram with short descriptions of economic
assumptions that have harmed the environment.
honors economics chapter 2
... 1. A pure market economic system has six major characteristics
a. little or no government control
b. freedom of enterprise
c. freedom of choice
d. private property
e. profit incentive
a. Adam Smith – The Wealth of Nations (1776)
Chapter 9 Section 4 - Indianola Community Schools
... 2. The future according to Marx
a. Capitalist system will destroy itself.
- Factories drive artisans out= small number of people with
all the wealth
- Proletariat outnumbers and revolts and seize the
- Workers control and bring about economic equality.
- After awhile of cooperative living ...
Econ 2101 Macroeconomic Theory
... a complex market system with no one in
charge would work to coordinate all economic
activity. This idea became known as
- Centralized Planning
- Capitalism and Free Markets
3. Mixed Economies
... • Expensive product
• If there is an excess of labor people are
Participatory economics, often abbreviated parecon, is an economic system based on participatory decision making as the primary economic mechanism for the allocation of the factors of production and guidance of production in a given society. Participatory decision-making involves the participation of all persons in decision-making on issues in proportion to the impact such decisions have on their lives. Participatory economics is a form of decentralized economic planning and socialism involving the common ownership of the means of production. The participatory economic system is proposed as an alternative to contemporary capitalism, as well as an alternative to central planning. This economic model is primarily associated with the proposals put forth by the political theorist Michael Albert and economist Robin Hahnel, who describe participatory economics as an anarchistic economic vision.The underlying values that parecon seeks to implement are equity, solidarity, diversity, workers' self-management and efficiency (defined as accomplishing goals without wasting valued assets). The institutions of parecon include workers' and consumers' councils utilizing self-managerial methods for making decisions, balanced job complexes, remuneration based on individual effort, and participatory planning.Albert and Hahnel stress that parecon is only meant to address an alternative economic theory and must be accompanied by equally important alternative visions in the fields of politics, culture and kinship. The authors have also discussed elements of anarchism in the field of politics, polyculturalism in the field of culture, and feminism in the field of family and gender relations as being possible foundations for future alternative visions in these other spheres of society. Stephen R. Shalom has begun work on a participatory political vision he calls ""par polity"". Both systems together make up the political philosophy of Participism. Participatory Economics has also significantly shaped the interim International Organization for a Participatory Society.