Free Market

Centrally Planned Economy

Mixed Economy ‘Murica

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Question 1 - 200

• An arrangement that allows buyers and sellers to exchange things.

Answer 1 – 200

• What is a market?

Question 1 - 400

• The concentration of the productive efforts of individuals and firms on a limited number of activities.

Answer 1 – 400

• What is specialization?

Question 1 - 600

• Are the players in a Free Market Economy

Answer 1 – 600

• Who are households and firms

Question 1 - 800

• Work together to regulate the marketplace.• These two things keeps the market in order,

part of the phenomenon known as the “invisible hand” of the market place

Answer 1 – 800

• What are self-interest and competition?

Question 1 - 1000

• On this type of model, it can be seen that the flow between the factor market and the product market are truly circular

Answer 1 – 1000

• What is a Circular Flow Model

Question 2 - 200

• In this type of economy who answers the economic questions

Answer 2 – 200

• Who is the central government

Question 2 - 400

• A social and political philosophy based on the belief that democratic means should be used to distribute wealth evenly throughout a society.

Answer 2 – 400

• What is socialism?

Question 2 - 600

• Arose out of socialism, and is characterized by a centrally planned economy with all economic and political power resting in the hands of the central government

Answer 2 – 600

• What is communism?

Question 2 - 800

• Communist governments are this• These style governments exact strict

obedience from their citizens and do not allow individuals freedom of judgment and action.

Answer 2 – 800

• What is Authoritarian.

Question 2 - 1000

• Collectives-large farms leased by state to peasant farmers

• Heavy industry- requires a large capital investment to produce items used in other industries

• Consumer shortages • These WERE all characteristics of what?

Answer 2 – 1000

• What is the Former Soviet Union

Question 3 - 200

• An economy that blends the market with government intervention, or involvement, in the marketplace.

Answer 3 – 200

• What is a Mixed Economy

Question 3 - 400

• This doctrine was believed in by early free market philosophers.

• It is a belief that the government generally should not intervene in the marketplace.

Answer 3 – 400

• What is Laissez faire?

Question 3 - 600

• When firms purchase factors of production from households, that exchange takes place in the factor market

• When households purchase goods and services produced by firms, that exchange takes place in the product market.

• In Mixed Economies, the government interacts in both markets to provide benefits.

• All of this can be seen on a what?

Answer 3 – 600

• What is a Circular Flow Model of a Mixed Economy?

Question 3 - 800

• Another name for the period of change in which an economy moves away from central planning toward a market-based system.

Answer 3 – 800

• What is transition?

Question 3 - 1000

• The scale that shows where most countries would fall between a centrally planned economy on one end and a free market economy on the other end, with no clear divisions

Answer 3 – 1000

• What is a continuum?

Question 4 - 200

• The United States Economy was built upon the foundation of the Free Market.

• It operates in a system that has investments that are determined in a free market by private decision rather than by state control.

• This system is known as

Answer 4 – 200

• What is free enterprise

Question 4 - 400

• America has this type of economy

Answer 4 – 400

• What is a Mixed Economy?

Question 4 - 600

• The American government regulates some of the market with laws.

• This type of law protects a new products inventor’s exclusive right to sell it for a certain period of time.

Answer 4 – 600

• What are patent laws

Question 4 - 800

• The United States operates at a high level of economic freedom. Americans can buy and sell what they please as long as it stays within the boundaries of the law. This economic freedom is one of the many things that instills Americans with love for their country.

• That sense of pride can also be called?

Answer 4 – 800

• What is a Patriotism?

Question 4 - 1000

• Americans ultimately make the decisions on what is produced and consumed. The government or producers do not control the market. The power of the people make the rules. When consumers have this type of power it is known as

Answer 4 – 1000

• What is consumer sovereignty.

Final Jeopardy

• refers to the actions that governments take in the economic field. It covers the systems for setting levels of taxation, government budgets, the money supply and interest rates as well as the labor market, national ownership, and many other areas of government interventions into the economy.

Final Jeopardy

• What is an economic policy?