Unit I: Economic Lingo

UNIT I: ECONOMIC LINGO 1. Free mart rescue (aka: Capitalistic Economy): A type of economy ground on (1) private ownership of just about(prenominal) imaginativenesss, goods, and other stuff (private property); (2) exemption to generally use the privately-owned resources, goods, and other stuff to get the most wages, rent, interest, and profit possible; and (3) a system of relatively emulous markets. magical spell organisation establishes the legal rules of the game for capitalist economy and provides miscellaneous public goods, like national defense, education, and infrastructure, most issue consumption, and resource apportionment decisions argon left up to soul businesses and consumers. The status capitalism is derived from the notion that capital goods are nether private, or else than government, ownership. 2. Command Economy: An economy in which the government uses its controlling powers (such as control and control) to answer the three questions of alloca tion. This is the veritable homo version of the idealized theoretical excellent ascendancy economy. While in this real world version most allocation decisions are undertaken by markets, the vast majority are make by central planning. The two most notability command economies of the 20th century were the communist/socialist scotch systems of mainland China and the Soviet Union. 3.

Mixed Economy: An economy, or economical system, that relies on both markets and governments to allocate resources. While, in theory, we could have a clean market economy or a pure command economy, in the real world all economi es are mixed, relying on both markets and go! vernments for allocation decisions. Markets allocate resources through automatic choices make by living, breathing people. Government forces allocation through impulsive taxes, laws, restrictions, and regulations. Both institutions play vial roles in an economy. 4. Goods: (Provide interpretation and an example) When employ without an adjective modifier (like final goods or medium goods), this generically means...If you want to get a full essay, fiat it on our website: OrderCustomPaper.com

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