The government of a country must make a decision between increasing military spending and subsidizing wheat farmers. This kind of decision is
a
.
Production Possibilities
In what kind of an economy does the government make all the decisions?
A centrally planned economy, also known as a command economy
, is an economic system in which a central authority, such as a government, makes economic decisions regarding the manufacturing and the distribution of products.
When a government must decide between consumer goods and military goods What is this called?
A war economy
must make substantial adjustments to its consumer production to accommodate defense production needs. In a war economy, governments must choose how to allocate their country’s resources very carefully in order to achieve military victory while also meeting vital domestic consumer demands.
When a theater owner considers whether to install another row of seating she is?
| Term Factors of production Definition Land, labor, capital | Term When a theater owner considers whether to install another row of seating, she is thinking at the margin. using human capital. experiencing a shortage. underutilizing her resources. Definition thinking at the margin. |
|---|
What best describes the role of government in a market economy?
The government (1)
provides the legal and social framework within which the economy operates
, (2) maintains competition in the marketplace, (3) provides public goods and services, (4) redistributes income, (5) cor- rects for externalities, and (6) takes certain actions to stabilize the economy.
What are the 5 key economic assumptions?
- Self- interest: Everyone’s goal is to make choices that maximize their satisfaction. …
- Costs and benefits: Everyone makes decisions by comparing the marginal costs and marginal benefits of every choice.
- Trade- offs: Due to scarcity, choices must be made. …
- Graphs: Real-life situations can be explained and analyzed.
Why does every decision involve trade offs?
Every decision involves trade-offs because
every choice you want results in picking it over something else
. Opportunity cost means choosing the better one of two ideas. There will always be an alternative; what could have happened instead.
Does the government make all the decisions?
A command economy
is the kind of economy where the government makes all the decisions.
Who owns most property resources in a command system?
- True: in a command economy, the government owns most property resources. …
- command system. …
- Markets and prices. …
- Government. …
- A market system. …
- True. …
- By locating production facilities optimally to hold down production and transportation expenses. …
- the cost of needed resources.
What are the 4 main types of economic systems?
- Pure Market Economy.
- Pure Command Economy.
- Traditional Economy.
- Mixed Economy.
Which of the following is an example of a microeconomic decision?
Hiring Employees
.
Within your small business operations, how much time you spend looking for a new employee
is an example of a microeconomic decision. Suppose you post an ad for a vacancy that needs to be filled quickly.
Which of the following is characteristic of a traditional economy?
A traditional economy is a system that
relies on customs, history, and time-honored beliefs
. Tradition guides economic decisions such as production and distribution. Traditional economies depend on agriculture, fishing, hunting, gathering, or some combination of the above. They use barter instead of money.
Which of the following is an example of a firm trying to increase its human capital?
Which of the following is an example of a firm trying to increase its human capital?
Saws and drills
.
What is the role of consumers businesses and government in a market economy?
In a market economy,
businesses aim to supply their products, goods and services at the highest price consumers are willing to pay
, while consumers look for the lowest prices they can find for those supplies.
What is the difference between a business cycle and day to day market fluctuations?
What is the difference between a business cycle compared to day-to-day market fluctuations? …
A business cycle is usually more restricted
, whereas market fluctuations are worldwide. A business cycle is a major, prolonged fluctuation rather than a day-to-day movement.
What is one disadvantage of a free market society?
What is one disadvantage of our free market society? …
Consumers have fewer choices than they do in other societies
.
