econ Flashcards
Traditional Economy
All economic decisions are based on customs, traditions, and beliefs of the past.
Command Economy
All economic decisions are made by the government.
Market Economy
an economic system in which production and prices are determined by unrestricted competition between privately owned businesses.
Mixed Economy
an economic system combining private and public enterprise.
Scarcity
the state of being scarce or in short supply; shortage.
Bartering
exchange (goods or services) for other goods or services without using money.
Free Enterprise
an economic system in which private business operates in competition and largely free of state control.
Capitalism
an economic and political system in which a country’s trade and industry are controlled by private owners for profit.
Socialism
a political and economic theory of social organization which advocates that the means of production, distribution, and exchange should be owned or regulated by the community as a whole.
Supply/Demand
the amount of a commodity, product, or service available and the desire of buyers for it, considered as factors regulating its price.
Human Resources
the personnel of a business or organization, especially when regarded as a significant asset.
What are the three basic economic questions?
what will be produced, how will it be produced, and how will the output society produces be distributed?
In a command economy, who makes all of the decisions?
The government
Most countries are what type of economy?
Mixed economy
