an economy is the exchanging of products and service for other products/money
people lived in hunting and gathering societies for the first ___________ years or so of human existence
5 million years
what was the hunting and gathering system?
ancient humans would hunt and gather food and materials they needed for themselves and their communities
people could only hunt and gather "______ ______"
immediate needs
each person had a ____ to play in the community's _______
role, success
several tasks a person in a hunting/gathering society would do included...
capturing/preparing food, collecting water, clothes and shelter, etc
what did studies show about hunting and gather societies?
people in hunting/gathering societies were happier than people in modern societies (more recreation time)
when did hunting and gathering societies start to fizzle out?
when people started to accumulate long-tern supplies of foods or they wanted food not available in their area
what are two issues in hunting and gathering societies?
tech and modern care, as things such as x-rays are not found in nature (lower life expectancy)
memorize
Traditional Economy
Question
Answer
which economy is the foundation for all of the other economy types?
traditional economy
what is traditional economy usually based on?
farming and trading
describe a traditional economy scenario with food
one farmer grows potatoes, another grows tomatoes, at harvest time they trade so each farmer ends up with a variety of produce rather than just one type
traditional economies also work with _______
services
describe a traditional economy scenario with services
a doctor can exchange medical care for a farmer's food or a blacksmith's services
very little _____ is required in a traditional economy
money
most exchanges in a traditional economy are made by _____
"bartering" (trading)
traditional economy still exists today, mostly in _________ or ____ world country
2nd, 3rd
one __________ will never accumulate enough to be _______ compared to 1st world countries like canada
community, wealthy
traditional economies are at the mercy of ______ ________ events or _______ ________
extreme weather events or natural disasters
traditional communities usually lack advanced _______ or __________
medicine or technology
memorize
Command Economy
Question
Answer
what is a command economy?
a command economy is controlled by a central government
the idea of a command economy is rooted in ________
communism
how does a communist government work?
the government shares any profit among the citizens
describe a scenario of a communist country
a country would sell oil to its neighbours, then divide the profit among the citizens equally
what is the big flaw with command economies?
it has never worked to the benefit of the people because the countries have leaders who keep more for themselves than they divide among the people
why do people lose motivation to work hard in a command economy?
once they realize they are all payed equally regardless of effort, they will stop working hard because it doesn't benefit them
memorize
Market Economy
Question
Answer
also known as ___________
capitalism
the market economy is the opposite of the _____ _______
command economy
how does a market economy work?
people create jobs and financial success without any interference from the government
who does the market economy favour ?
entrepreneurs (people who create their own businesses)
is there such thing as a truly free market economy?
no
governments always have some ________ over the market economy
influence
it is difficult to live in a capitalist society for people who are not ________ or _______
wealthy or motivated
it is nearly ________ to catch up once you fall behind in the "_______________"
impossible, race to the top
market communities are based off "_______ ____ _______"
supply and demand
what is supply and demand?
rare and hard to get = more valuable, common and easy to get = cheaper