Econ Systems

  1. Adam smith's invisible hand refers to the role of:
    The market
  2. What is an example of a market?
    a starbucks store, a grocery store, ebay
  3. Competition:
    A characteristic of a market economy that spreads out economic power between producers, so no one can have total control over prices
  4. What is true about the product market?
    Businesses sell goods and services to households
  5. What market interaction takes place: The city of Edina builds a new public park
    Product market interaction
  6. What market interaction takes place: Larry purchases a new coat for the winter from Von Maur
    Product Market
  7. What are the 3 basic questions?
    • What is produced?
    • How is it produced
    • For whom is it produced?
  8. Scarcity:
    • Must be limited in quantity and be desirable
    • Have one or more valuable use
  9. Pure Command:
    • Government answers the 3 questions
    • North Korea
  10. Pure Market:
    • People answe 3 questions
    • U.S.A
Card Set
Econ Systems
Forster november 16th 2011