Which best describes a traditional economy?
The 3 questions are decided by custom and habit
3 questions economic systems must answer:
what is produced, how is it produced, who gets it
major problem with command systems
fail to provide incentives to work hard, fail to provide freedom of choice to consumers, produce goods/services inefficiently.
trade offs are unnecessary when...
consuming free goods
Laissez-faire is associated with...
a pure free market
Which is not a synonym of a free market economy?
mixed
You study for 3 hours and get an A on the exam. What is not an oppurtunity cost?
the satisfaction from receiving the A
A production Possibility Curve shows..
trade-offs that are made in the production of possible goods.
Adam Smith's "invisible hand" claims that when people pursue their own self interest........
their actions create the most social good
Financial capital includes
the money in your savings account