1.01 Flashcards
a nations plan for answering the three economic questions
Economic System
What are the 3 economic questions
How to produce
what to produce
for whom to produce
the basic economic problem exists due to resources for satisfying unlimited needs and wants
Scarcity
Who answers the 3 economic questions in the US
Command/Communist
Market
Traditional
Mixed
The Government owns resources and dictates what is produced
Command/Communist
Goods and services are owned and controlled by the people
Market
Centered on Family
Traditional
Command and Market - Government and The People
Mixed
A …… economy is driven by consumers and producers
Market
the quantity of goods or services that consumers are willing to buy.
Demand
the quantity of goods and services that businesses are willing and able to produce.
Supply
The point where supply and demand are equal
Market Price
