economic outline Flashcards Preview

government and politics sophomore > economic outline > Flashcards

Flashcards in economic outline Deck (84)
Loading flashcards...
1

what type of economic system does the US have

capitalism

2

what are the factors of production

land, capital, labor

3

can people in the US own their labor and sell it to an employer

yes

4

what happens when entrepreneurs start a business

it creates more jobs

5

more jobs =

more money

6

more money=

people can but more things

7

what type of system is capitalism

free enterprise

8

what are free enterprise and free markets usually associated with (political party)

democrats

9

everything in a capitalist economy is based on ______

freedom

10

what type of things can happen in a capitalist economy with freedom

entrepreneurs can change businesses
workers can quit their jobs
workers can organize themselves into unions

11

______ is to a capitalist system

private ownership

12

what type of things can happen in a capitalist economy with private ownership

business owners will decide how to use their capital and how to invest
workers also own their labor
workers choose their type of job
workers agree to salary
workers can quit

13

what type of things can happen in a capitalist economy with individualism

anyone can stat their own business
exchange ideas to help advance their business and life

14

more exchange of ideas =

more ideas in society

15

if people invest in themselves or their business, they they are entitled to receive___________

any benefits

16

can you make a profit in a capitalist system

yes

17

what causes entrepreneurs to invest further

desire for more money

18

more investment=

more jobs

19

a capitalist system creates_______

competition

20

what does competition do to products

prices stay low and quality remains high

21

how are prices determined

supply and demand

22

what happens if there is more of a supply and demands stay the same

prices fall

23

what happens if demand increases and supply stays the same

prices fall

24

what happens if demand increase and supply stays the same

prices rise

25

does competition always favor the consumer

no

26

what happens if a company is too good and knocks out all the competition

monopoly

27

what advantage does a monopoly have

they can charge whatever price because there is no competition

28

how did the government feel about monopolies

hurt the free market

29

who watches to make sure there are no trusts or monopolies

justice department

30

what was adam smiths book called

the wealth of nations