About This Chapter
Economic Systems & Activity - Chapter Summary
Top instructors have developed informative lessons you can review whenever your schedule permits to enhance your knowledge of economic systems and activity. Gain greater insight into socialism, capitalism, entrepreneurship, free markets and much more with help from this chapter. When finished, you will be prepared to:
- Define and describe the characteristics of a traditional economy
- Compare and contrast socialism, communism and mixed economies
- Discuss capitalism and competition within the free markets
- Explain how the government protects the U.S. economy and promotes economic interests
- Detail how the economy is impacted by fiscal policy and monetary policy
- Describe the circular flow of economic activity
- Provide details about the importance of entrepreneurship to the economy
- Share your knowledge of marginal propensity to consume and its impact on the individual and national economy
This chapter is flexible, enabling you to access resources anytime and from any computer or mobile device. Review lessons in the sequence and at the frequency you desire. Feel free to test your comprehension by taking short self-assessment quizzes before, during or after exploring the lessons. Reach out to our experts to expand your knowledge of economic systems and activity concepts.
1. What is a Traditional Economy? - Definition, Characteristics, Advantages & Examples
In this lesson, we will learn about traditional economies. We will define the term, look at both advantages and disadvantages, and apply the information to an example. This will be followed by a summary and a quiz.
2. Understanding Socialism, Communism, and Mixed Economies: Comparison & Analysis
Socialism and communism are alternative economic systems to capitalism. In this lesson, you'll learn some of the key concepts behind these economic systems. You'll also learn about mixed economic systems.
3. Capitalism and the Free Market: Definition & Limitations
Capitalism is an economic system that has played a dominant part in building the world in which we currently live. In this lesson, you'll learn about some key concepts of capitalism, as well as its limitations.
4. Competition Within Free Markets: Types & Summary
We live in a free market economy, but that doesn't mean there is always free competition. In this lesson, you'll learn about perfectly competitive markets, monopolies, monopolistic markets and oligopolies.
5. How the Government Protects the U.S. Economy
The following lesson will cover the ways in which the government protects the U.S. economy and ensures stable economic growth. A short quiz will follow the lesson to check for your understanding.
6. How the Government Promotes Economic Interests
The following lesson will cover how the government promotes its economic interests through businesses, labor, and agriculture. There will be a short quiz following the lesson to check your understanding.
7. How Fiscal Policy and Monetary Policy Affect the Economy
Governments often intervene in their economies in an attempt to maintain economic stability. In this lesson, you'll learn about fiscal and monetary policies, including what effect they can have on a national economy. A short quiz follows.
8. Circular Flow of Economic Activity: The Flow of Goods, Services & Resources
Learn about the simple model used to describe where money goes and what it is exchanged for in a market economy. The circular flow model of economic activity shows you the basic relationships between households, firms and the government.
9. Entrepreneurship & the Economy: Definition & Importance
Entrepreneurs fill a vitally important role in market economies. In this lesson, you'll learn about the importance of entrepreneurship, different types of entrepreneurs and how they add value to an economy.
10. Marginal Propensity to Consume: Definition and Formula of the MPC
MPC or MPS, what category is higher when you have extra money? In this lesson, learn about the marginal propensity to consume, one of the most important assumptions underlying fiscal and monetary policy.
11. Impact of Marginal Propensity to Consume on Individual & National Economy
In this lesson, we will learn about marginal propensity to consume. We will learn what it is and how it affects both individuals as well as the economy. When the lesson concludes, you will be able to test your knowledge with a quiz.
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Other chapters within the PLACE Social Studies: Practice & Study Guide course
- World History Through the 1500's
- World History from the 1500s to the 1700s
- Mid-18th Century to Present Day World History
- Pre-Colonial America
- Colonizing the New World & the Start of a New Nation
- America's Early Years
- America from the Civil War to WWI
- The United States in the 20th Century
- The Evolution of American Culture in the 20th Century
- Geographic Tools & Regions
- Human Population Patterns
- Humans & Environmental Impact
- Historical Geography & Contemporary Issues
- The United States Constitution & Government
- Structure of the Different Levels of U.S. Government
- Colorado History & Law
- Political Relationships & the United States
- Microeconomics & Macroeconomics Overview
- Exchange & Trade Relationships
- Psychology, Sociology & Anthropology Basics
- Behavioral & Social Science Basics
- Writing & Research for Social Studies
- PLACE Social Studies Flashcards