2 Flashcards
1
Q
What is a need?
A
Necessities: things that are essential for human survival.
(Water, Food, Clothing)
2
Q
What is a want?
A
Something that people would like to have.
3
Q
What is welfare?
A
Human happiness.
4
Q
What is an economic system?
A
Institutions that decide what, how and for whom to produce.
5
Q
What are the two forms of economic mechanisms?
A
Command mechanism - government allocate resources
(Command mechanism leads to Command Economy)
Price mechanism - consumers and businesses interact to determine the allocation of resources
(Price mechanism leads to Free Market Economy)
6
Q
What is a mixed economy?
A
A system that combines aspects of both capitalism and socialism.
^ (A mix between Free market and Command economy)
7
Q
A
