UT Knoxville POLS 102 - POLS 102 SG Chap 8 (2 pages)

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POLS 102 SG Chap 8



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POLS 102 SG Chap 8

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Pages:
2
School:
University of Tennessee
Course:
Pols 102 - Intro/Political Science

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1 What is a Market Economy page 215 a Resource Inequality and Hardship competition among actors leads to winners and losers b Production for Profit not Need Goods are produced based on their profitability not on societal needs c Severe Economic Cycles Cyclical nature of the system from hyperactivity to economic slowdown 2 What is a Command Economy page 216 a Limited Incentive for Efficiency lacks incentives for continued economic growth b Unresponsive Production Production based on government decree not by consumer need c Overcentralization and Inflexibility government planners cannot know the intricacies of all industries and thus cannot act efficiently 3 What is a mixed economy page 217 A mixed economy is an attempt to combine the strengths of market and command economies while also minimizing their shortcomings 4 Define Economic Growth page 203 Economic growth is characterized as the increased production of goods produced bought and sold by all the actors in an economic system As an economy grows it becomes increasingly complex and more actors become involved in the production and distribution of goods 5 What are the factors of production page 200 Land the ground and any raw materials on it or in the ground Labor human productive input work Capital nonhuman productive input from other resources financial resurces machinery and technology 6 What is the difference in Gross Domestic Product GDP and Gross National Income GNI page 207 GDP is the total value of all final goods produced by all people within a state s boundaries whether or not they are citizens GDN includes the production of all citizens of the state whether they are inside the state s boundaries or not 7 Explain how Supply and Demand affect price page 202 If demand is low relative to supply prices decrease If demand is high relative to supply prices increase The perfect balance point between supply and demand is known as the equilibrium point 8 Define capitalism page 220 Capitalism is a system in which



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