is an economic system in which all or most of hte means of production and distribution are privately owned and operated for profit. Who decides to produce under capitalism? business decide what to produce, how much to pay workers, how much to charge for goods and services Basic Rights Under Capitalism Right to Private Property, Right to own a business and to keep that business profit after taxes, freedom of competition, and right to freedom of choice How does the Free Market work? buyers and sellers negotiate prices for goods and services influence the decisions about what gets produced and in what quantities. Socialism is an economic system base on the premise that some business should be owned by the government Advantages of Socialism creates more social equity. workers receive more education, health care, fewer work hours, longer vacations Disadvantages of Socialism lowers incentive to start a business or to work hard higher unemployment rate and slower growth rate Socialism Differ From Communism communism the government owns almost all major production facilities and dictates what gets produced and by whom Mixed Economy is part capitalist and part socialist, business privately owned but taxes are high and income is redistributed Gross Domestic Product is the total value of final goods and services produced in a country in a given year Unemployment Rate refers to the % of civilians at least 16 years old who are unemployed and tried to find a job within 4 weeks Consumer Price Index measures changes in the prices of about 400 goods and services that consumers buy What are the 4 phases of business cycles? economic boom, recession, a depression, recovery
is an economic system in which all or most of hte means of production and distribution are privately owned and operated for profit. Who decides to produce under capitalism? business decide what to produce, how much to pay workers, how much to charge for goods and services Basic Rights Under Capitalism Right to Private Property, Right to own a business and to keep that business profit after taxes, freedom of competition, and right to freedom of choice How does the Free Market work? buyers and sellers negotiate prices for goods and services influence the decisions about what gets produced and in what quantities. Socialism is an economic system base on the premise that some business should be owned by the government Advantages of Socialism creates more social equity. workers receive more education, health care, fewer work hours, longer vacations Disadvantages of Socialism lowers incentive to start a business or to work hard higher unemployment rate and slower growth rate Socialism Differ From Communism communism the government owns almost all major production facilities and dictates what gets produced and by whom Mixed Economy is part capitalist and part socialist, business privately owned but taxes are high and income is redistributed Gross Domestic Product is the total value of final goods and services produced in a country in a given year Unemployment Rate refers to the % of civilians at least 16 years old who are unemployed and tried to find a job within 4 weeks Consumer Price Index measures changes in the prices of about 400 goods and services that consumers buy What are the 4 phases of business cycles? economic boom, recession, a depression, recovery
EOPA_Vocabulary_Study_Guide.docx