, KEY CONCEDTS
· economic system
invisible hand
·
laissez-faire capitalism ·
competition
markets
·
market
emerging
· command system ·
specialization
· market system division of labour
·
private property ·
money
freedom of enterprise
·
consumer
sovereignity
·
rand votes
·freedomofche
enter
·
creative destruction
ECONOMIC SYSTEMS
·
economic a
particular set of institutional
arrangements and a
co-ordinating mechanism to
respond to the problem of scarcity
&
system
What
goods are produced
↳ economic systems * 4
major role
players
determine : ~
How they are produced in economic system
- who
gets goods 1) Households
& now to accommodate
change 2) Business enterprise
How to 3) gout .
Promote technological 4) foreign sector
progress
-Wingoutinterventionenomic
S
Laissez-faire Capitalism activities
how do economic systems differ :
>
-
Types Command system -
gout have full control over economic
1) who owns factors of production
activities
I co-ordinate
I
methods used to economic
What
2) are
Market system/ activity
mixed economies
Laissez-faire Capitalism
↓
· also called pure capitalism
protecting private property
·
government's role is limited Best.
to a
legal
environment in which ppl interact in markets to
A closed economic buy + sell goods
circular flow
diagram ·
products flow from firms households
* Product Firms receive revenue from households
Market
expenditure on
goods + services firms receive income * Resource ·
resources flow from households >
- firms
A
Product Market from
households receive income firms
MarketB
·
goodsentices
services
consume supply goods +
&
gout
goutexpendit
.
a
consume
S
①
g+ *
gorservices gov
*
ervices Gout Intervention = limited
Households Firms
.
D
Government
D *
Pa pay taxes welfare
axes ⑭ believe that govt interference >
-
reduces human
goutivea
*
·
.
goinditure ) be
↳ corrupt Cuse economic resource to benefit themselves)
on factors govt .
=
utilization ora factors
⑤
supply production Resource Prevent individuals + firms from coering a
factors : Gout . Only -
A
Market role is to
# ensure mutually benefical economic activities
Income expenditure on
negociated
received
are
Production factors
· economic system
invisible hand
·
laissez-faire capitalism ·
competition
markets
·
market
emerging
· command system ·
specialization
· market system division of labour
·
private property ·
money
freedom of enterprise
·
consumer
sovereignity
·
rand votes
·freedomofche
enter
·
creative destruction
ECONOMIC SYSTEMS
·
economic a
particular set of institutional
arrangements and a
co-ordinating mechanism to
respond to the problem of scarcity
&
system
What
goods are produced
↳ economic systems * 4
major role
players
determine : ~
How they are produced in economic system
- who
gets goods 1) Households
& now to accommodate
change 2) Business enterprise
How to 3) gout .
Promote technological 4) foreign sector
progress
-Wingoutinterventionenomic
S
Laissez-faire Capitalism activities
how do economic systems differ :
>
-
Types Command system -
gout have full control over economic
1) who owns factors of production
activities
I co-ordinate
I
methods used to economic
What
2) are
Market system/ activity
mixed economies
Laissez-faire Capitalism
↓
· also called pure capitalism
protecting private property
·
government's role is limited Best.
to a
legal
environment in which ppl interact in markets to
A closed economic buy + sell goods
circular flow
diagram ·
products flow from firms households
* Product Firms receive revenue from households
Market
expenditure on
goods + services firms receive income * Resource ·
resources flow from households >
- firms
A
Product Market from
households receive income firms
MarketB
·
goodsentices
services
consume supply goods +
&
gout
goutexpendit
.
a
consume
S
①
g+ *
gorservices gov
*
ervices Gout Intervention = limited
Households Firms
.
D
Government
D *
Pa pay taxes welfare
axes ⑭ believe that govt interference >
-
reduces human
goutivea
*
·
.
goinditure ) be
↳ corrupt Cuse economic resource to benefit themselves)
on factors govt .
=
utilization ora factors
⑤
supply production Resource Prevent individuals + firms from coering a
factors : Gout . Only -
A
Market role is to
# ensure mutually benefical economic activities
Income expenditure on
negociated
received
are
Production factors
