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Exam 3 question - CHAPTER 13- ECOMONICS 1. Know the diff...

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CHAPTER 13- ECOMONICS 1. Know the diff types of economies a. Barter system- FIRST/OLDEST-based on the exchange of goods// limited by how much one can carry or store/ not dependant on $ b. Money Economy- MORE COMPLEX-things can be exchanged for a wide variety of other things as long as there was a systematic way for everyone agreeing i. Feudalism-large scale agriculture/ based on how much land nobility had and could accumulate ii. Command economies- government tries to regulate most aspects of the economy 1. Mercantilism- any flow of goods into or out of country has to be paid with taxes 2. Know the two most prominent types of economies these days- strength and weaknesses a. Socialism-government owns the major means of production i. Strength- distributes goods according to need not the ability to pay/ don’t have to control your cost because it is based on distribution/ must have huge bureaucracies/employers want to exploit workers/ more you reduce labor cost the higher your profit ii. Weakness- no incentive for efficiency b. Free market capitalism- any person is allowed to engage in any type of economic activity as long as it is legal. i. Strength- it produces efficiently so you can compete with others ii. Weakness- distribution is on the ability to pay not on needs 3. Different sectors of economy: what they are and how they changed over time in this country a. Primary- involved with the extraction of raw materials (agriculture, mining)/ 100 years ago was LARGEST now only 3% b. Secondary-taking raw materials and turning them into finished goods (manufacture sector)/ from 1920-1950 was LARGEST now only 19% c. Tertiary- selling goods and services to other people (service sector)/ LARGEST today/ no extracting and no manufacture (sales, clerks, doctors) d. Underground/shadow economy- all activity that escapes the government oversight
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CHAPTER 12-EDUCATION 4. Education- the nature of goods and services based on how they are consumed and paid for a. Private goods- where you have to pay for goods you use b. Public goods-cant be controlled in the air so no one pays for them (radio, broadcast TV)/ Indirect c. Common pool goods- things in air that cant be controlled/ free to everyone/ they are PUBLIC GOODS d. Joint consumption goods- can be controlled and someone has to pay for them/ the number of users does not increase the supply/ can be PRIVATE (cable TV or satellite) or PUBLIC (broadcast radio and TV) e. Individual consumption-those that every user reduces the supply available to others/ PRIVATE (TV, radios, cars, higher education) or PUBLIC (k-12 education, European health care) f. Worthy goods- goods that are so important to society that should be available to everyone regardless of pay (ex. K-12 education, health care systems) What do we call it when a good is transformed from private to public- worthy good 5. ??When did we make k-12 a worthy good and why?? a.
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Exam 3 question - CHAPTER 13- ECOMONICS 1. Know the diff...

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