Business U3 Q2

What is the term for a culture that specializes in cultivating land and selling crops?

agrarian culture

- A country is currently exporting calling services but can make more money producing furniture.

comparative

- A sheep shearer one day discovers she can make more money harvesting corn.

comparative

- An individual is a counselor but discovers a higher demand for services accounting, so goes to accounting school.

comparative

- Businesses choose what to produce and can then freely compete in the open marketplace.

competition

- A country has high amounts of nitrogen in its soil, and thus can grow and sell peanuts internationally at a cheaper price.

competitive

- An individual discovers she is highly skilled in cosmetology and that customers are willing to pay a higher price for her skills, so she decides to start her own salon.

competitive

- This free market characteristic involves the right to earn and save money.

profit

- This economic system is rooted in tradition.

traditional

___________ is the term for the belief in or practice of selfless concern for the well-being of others or the greater society.

Altruism

Which of the four questions below is one of the three specific questions inherent in every economic system?

For whom should we produce it?

What is meant by the phrase people respond to incentives?

Individuals are likely to perform actions if there are incentives behind them, such as earning more profit.

What is an economic system?

an organized way in which a nation's government chooses to use its resources to produce goods and services in an economy

- In this economic system, a nation's government makes all the economic decisions.

command

- This system is typically found in socialistic countries.

command

- This type of economy requires the most government control.

command

- Individuals have the right to decide what to buy, when to buy it, and how to use it.

economic freedom

An underdeveloped country is one that lags behind others on the basis of infrastructure, industrialization, _____________, GDP, and general advancement.

education

In a ____________, individuals exercise the personal freedom about what to purchase, what to sell, how to produce it, and the prices at which it should be sold.

free market

- The United States is primarily this form of economy.

market

- This economic system also goes by the name of capitalism.

market

- This economic system has produced the most wealth compared to all others.

market

- This type of economy is typically found in underdeveloped countries.

market

A ___________ is synonymous with (the same as) a free enterprise, private enterprise, free market, capitalistic system.

market system

- In this economy, the government only provides a few key services.

mixed

- In this system, both the government and individuals make decisions about how economic resources are to be produced and distributed.

mixed

Typically, the tragedy of the commons is remedied through __________

private ownership.

- In a free market economy, individuals are allowed ownership over assets, including land, possessions, and even ideas.

private property

- This system is also known as a free, or private, enterprise system.

traditional

What is an accurate example of the concept "tragedy of the commons"?

when a tractor is made public by the government, and it is not maintained because no one individual owns it