Which one? If not, what economic system do you think your nation runs? 2. In the space below, organize your economic data. Highlight statistics that you think would indicate that your country runs a market-oriented economy.
Economies were created through trading and bartering, mostly through social circles and relationships. Taxes and custom duties were created so that trade could be controlled to protect their economy. Two dominant economic systems exist throughout the world. They are capitalism and socialism. “Capitalism is an economic and social system in which capital and the non-labor factors of production or the means of production are privately controlled; labor, goods and capital are traded in markets; profits are taken by owners or invested in technologies and industries; and wages are paid to labor” (wikibooks.org).
Imani Shakir Period 3 Calhoun 09/11/2009 Chapter 4 Notes Demand What is Demand? Demand- the desire, ability, and willingness to buy a product that can compete with others who have similar demands. Microeconomics-the area of economics that deals with behavior and decision making by small units. The knowledge of demand is essential to understand how a market economy works. Demand Schedule-A listing that shows the various quantities demanded of a particular product at all prices that might prevail in the market at a given time.
Study the demand elasticity for its products and discuss the availability of close substitutes for its products. How does that affect pricing decisions? Analyze the company’s profitability. Identify the economy or industry influences on its costs, operations, and profitability. Describe the competitive environment in which the firm operates, the distribution of market power, and the strategic behavior of the firm and its competitors.
Answer: D - The Fed uses three policy tools to manipulate the money supply: ________, which affect reserves and the monetary base; changes in ________, which affect the monetary base; and changes in ________, which affect the money multiplier. A) open market operations; borrowed reserves; margin requirements B) open market operations; borrowed reserves; reserve requirements C) borrowed reserves; open market operations; margin requirements D) borrowed reserves; open market operations; reserve requirements Answer: B - The primary indicator of the Fedʹs stance on monetary policy is A) the discount rate. B) the federal funds rate. C) the growth rate of the monetary base. D) the growth rate of M2.
The choices they make have an affect the employment levels and the production of the economy. The Purpose and Function of Money Money can be described as a set of assets within a society’s economy that is used by the population to purchase products and services (Hubbard & O'Brien, 2010). Money is used to
Governments may choose to increase minimum wage on an arbitrary basis, making it difficult for companies to hire individuals at a consistent market rate. Government price controls distort the economic theory of supply and demand. Supply and demand is a significant underlying feature of free-market economies. This theory allows individuals and businesses to make decisions based on self-interest. Businesses often pay individuals a wage based on current market standards.
B) microeconomics. C) managerial economics. D) market economics. 2) Microeconomics is best described as the study of A) the choices made by individual households, firms, and governments. B) inflation, unemployment, gross national product, and the nation's economy as a whole.
money. scarcity. (Great Job!) Instructor Explanation: Economics is defined as "the study of how people, institutions, and society make economic choices under conditions of scarcity." (p. 4) The key economic concept is scarcity.
Question 1 Economics deals with Answer how individuals allocate scarce resources to satisfy unlimited human wants. Comments Correct!! Max Score: 1 Actual Score: 1 Question 2 What is the type of mechanism that answers the basic economic questions through a decentralized decision making process? Answer Market system Comments Correct!! Max Score: 1 Actual Score: 1 Question 3 Economic models are used to Answer simplify reality to predict outcomes.