Module 14 Lesson 1 Assignment

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How does traditional economy differ from command economy?

In the traditional economy, their economy is based on basic roles that have been placed for centuries. Where the tribal leaders will probably make most of the decisions. On the other hand, command economy has their basic questions answered by a central authority.

What is the difference between market economy and mixed economy?

The Market economy's decisions are mainly decided by individuals, not the government. The choices you make as a consumer affect the products that businesses make and the profit they receive for their products. Mixed economy, on the other hand, combines aspects of the four different types of economic systems. Japan, Germany and Australia all have mixed economy.

What are two features of capitalism?

Two features of capitalism is free enterprise and private property rights

How does competition relate to profit?

Capitalism thrives on competition. Competition reduces prices and rewards most efficient producers. While profit is the money left over after all costs of production have been paid. The profit motive is the force behind free enterprise and capitalism. People are willing to invest in a business venture and risk losing their investment for the chance to earn a profit. Both can be thought of as a money scam

What is private property and how does it relate to capitalism?

Private property is the right to own and use, or dispose of, our own property as we choose. As long as we do not interfere with the rights of others. Under capitalism, we have this right. Capitalism is an economic system in which private citizens own and use the factors or production to seek a profit. Both giving the right to own private property.

Describe capitalism and how capitalism is connected to a market economy.

Capitalism is an economic system that gives private citizens the right to own and use the factors or production to seek profit. Two concepts from capitalism come under the market system. People can work for economic gain and the government should have a very limited role in the economy.
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Define free enterprise.

Free enterprise is an economy that allows competition to flourish with barley any government interference.