Econ Flashcards
All economic decisions are based on customs and beliefs
Traditional Economy
All economic decisions are made by the government
Command Economy
Economic decisions are made based on the buyers and sellers.
Market Economy
When countries have some characteristics of two systems.
Mixed Economy
The limited supply of something.
Scarcity
Trading without using money.
Bartering
Private businesses operate in competition and are largely free of state control.
Free Enterprise
A country’s trade and industry are controlled by private owners for profit.
Capitalism
The workers or the government own the buildings and tools that make goods and services like farms and factories.
Socialism
The market’s ability to produce a good or service, as demand refers to the market’s want to purchase the goods or service.
Supply/Demand
Workers and their skills used to produce a good or service.
Human Resources
What are the three basic economic questions?
What goods/services will be produced?, How will goods/services be produced?, Who will consume the goods/services?
In a command economy, who makes all of the decisions?
The Government
Most countries are what type of economy?
Mixed Economy
