11/19/24 - Economic Vocabulary

Front

What is a Command Economy?

Back

An economic system where the government makes all decisions about the production and distribution of goods and services.

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Define consumers in economic terms.

Back

Individuals or households that purchase goods and services for personal use.

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What is an entrepreneur?

Back

A person who creates a new product or service or finds a better way to produce one.

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What characterizes a Market Economy?

Back

An economic system where all resources are privately owned, and producers and consumers answer the three economic questions.

Front

What is the role of the government in a Command Economy?

Back

The government decides what to produce, how to produce it, and who receives the goods produced.

Front

What are the three economic questions every economy must answer?

Back

1. What to produce? 2. How to produce? 3. For whom to produce?

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What is the difference between a Command Economy and a Market Economy?

Back

In a Command Economy, the government controls all aspects of production and distribution, while in a Market Economy, decisions are made by individuals and businesses based on supply and demand.

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What is the significance of entrepreneurship in an economy?

Back

Entrepreneurship drives innovation, creates jobs, and contributes to economic growth.

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How do consumers influence the economy?

Back

Consumers influence the economy through their purchasing decisions, which determine demand for goods and services.

Front

What is the concept of supply and demand?

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Supply refers to how much of a good or service is available, while demand refers to how much of it consumers want. Prices are determined by the interaction of supply and demand.