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Flashcards in BYV 2 Deck (13)
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0
Q

Profits

A

The desire to earn it is the reason for starting a business in capitalism

1
Q

Economic system

A

Set of rules through which production is organized

2
Q

Command economy

A

In this system the three basic questions are answered by the government

3
Q

Wealth

A

Accumulation of products that have been produced

4
Q

Division of labor

A

Splitting up the process of production into specific tasks

5
Q

Market economy

A

One in which the question what is decided by what is purchased

6
Q

Traditional economy

A

Basic economic decisions based on customs or religion

7
Q

Specialized capital

A

Capital that increases productivity and standard of living; efficient production allows people to make this instead of goods for current consumption

8
Q

Specialization

A

When people do one particular task and buy other things they need

9
Q

Capitalism

A

Economic system where basic economic questions are answered by individuals and not the government

10
Q

Allocation of resources

A

How resources are distributed in an economic system (in capitalism, decided by which firms can be profitable)

11
Q

For whom?

A

In capitalism, decided according to the value of a person’s contribution to production

12
Q

How?

A

In capitalism, decided by the firm’s costs if production and profits