4 Allocation Flashcards
efficient allotment and division of resources
allocation
process of identifying how scarce resources are to be apportioned
allocation
no central control; decisions based on socio-cultural system shaped by customs, traditions, and religious beliefs
traditional economic system
trading system is direct (barter)
traditional economic system
for barter to push through, what must occur?
double coincidence of wants and needs
stability and continuity are more important than innovation and change
traditional economic system
no concept of private property
traditional economic system
roles based on gender and status
traditional economic system
centralized decision-making – an advantage that produces rapid changes in their society
command economic system
individuality, innovation, and variety are completely lacking
command economic system
including most ancient civilizations and the communist countries of today
command economic system
central gov’t that owns the means of production and decides distribution of goods
socialism
contributes according to ability and gets back according to what you need
communism
contributes according to ability, distributed equally
socialism
freedom to choose whichever religion you want to believe in
socialism
