Term
| Economic goals are important because they help people determine what? |
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Definition
| if an economic sustem meets their needs |
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Term
| Economic and social goals include what three things? |
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Definition
| economic efficiency, price stability, and economic growth |
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Term
| Economic growth is needed to better satisfy what? |
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Definition
| the wants and needs of a growing population |
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Term
| Trade-offs among social and economic goals include: |
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Definition
| an increase in the minimum wage raises unemployment, a trade barrier protects jobs in the US, and an increase in property taxes funds a new school |
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Term
| The US is a ____________ economy |
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Definition
| market economy/modified private enterprise system |
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Term
| A market economy does not provide for everyone's basic needs; it doesn't provide for people that are: |
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Definition
| too old, or too sick to work |
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Term
| Strength/advantages of a market economy: |
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Definition
| it can adjust to change over time, it has decentralized decision making, it gives producers and consumers freedom, lack of government interference, and large variety of goods/services |
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Term
| Who ultimately determines the prducts that a free enterprise economy produces? |
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Definition
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Term
| What is one strength of a market economy |
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Definition
| the high degree of consumer satisfaction |
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Term
| How does a society provide for the wants and needs of its people? |
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Definition
| it determines the type of economic system it has |
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Term
| The opening of a new business that creates new jobs would be an example of what? |
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Definition
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Term
| The command economy collapsed in what two areas? |
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Definition
| the communist bloc countries of Eastern Europe and the former Soviet Union |
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Term
| What are some weaknesses of a command economy? |
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Definition
| requires a large decision-making bureaucracy, provides ew incentives for people to work hard, lacks the flexibility to deal with minor problems, does not meet wants and needs of consumers, and new and different ideas discouage (no room for individuality) |
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Term
| What is the purpose of government in a command economy? |
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Definition
| to make major economic decisions |
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Term
| What are some characteristics of a command economy? |
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Definition
| it can change direction drastically in a brief period of time, it is not designed to meet the wants of consumers, an it provides workers with few incentives for people to work hard |
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Term
| What are people's roles determined by in a traditional economy? |
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Definition
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Term
| Economic equity is an economic goal that is based on a sense of: |
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Definition
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Term
| Economic growth is necessary to meet the needs of a growing population by providing what? |
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Definition
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Term
| Economic growth is necessary to meet the needs of a growing population by providing what? |
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Definition
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Term
| What does Social Security address? |
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Definition
| the goal of economic security |
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Term
| Who is better off when buyers and sellers make a voluntary exchange? |
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Definition
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Term
| In a free enterprise system, people who risk their savings to gain wealth are doing it because of: |
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Definition
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Term
| Capitalism benefits consumers because competition does what? |
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Definition
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Term
| What is considered as the customer's control of the market? |
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Definition
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Term
| When inflation rises, people: |
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Definition
| pay more for most products |
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Term
| Inflation's affect on labor can cause a business to reduce its ___________ and thus reduce the effective spending power of workers' __________ |
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Definition
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Term
| Inflation mqay affect consumers bu limiting their: |
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Definition
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Term
| Cuts in governments spending is a result of: |
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Definition
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Term
| In a market economy based on capitalism, who owns the factors of production? (not government) |
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Definition
| entrepreneurs and private citizens |
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Term
| People who are living on a fixed income find that it is more difficutl to pay bills and plan for the future when: |
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Definition
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Term
| The US economic system is called a modified private enterprise economy because: |
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Definition
| people generally carry on their economic affairs freely, but are subject to some government regulation |
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