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AP Econ Ch. 3 "Systems of Government"
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Communism
A system designed to minimize imbalance in wealth via the collective ownership of property.
Includes a lack of incentives, risk taking, and innovation.
Is an easily corruptable single-party system.
Socialism
A system that attempts to distribute wealth fairly.
It has a pitfall of inadequate incentives.
Wages are determined through negociations between trade unions and managers.
It has more than one political party.
Capitalism
A system where private individuals control the factors of production and operate them in the pursuit of profit.
Wages are determined by the negociations between managers and unions.
Supply and demand largely determine the allocation of scarce resources.
Demand
How much a person want to buy a good.
Demand Curve
A graph that displays the relationship between price and then quantity demanded of a good within a given period.
Demand Schedule
A chart/table that displays the relationship between price and the quantity demanded of a good within a given period.
Law of Demand
A law that states that as the price of a good rises, the quantity of that good demanded by consumers falls.
Law of Diminished Marginal Utility
A law that states that the satisfaction gained from additional units of a good consumed will decrease in a given period.
Author
sa711kevin
ID
8413
Card Set
AP Econ Ch. 3 "Systems of Government"
Description
AP Econ Ch. 3 "Systems of Government"
Updated
2010-02-28T09:08:17Z
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