econ Flashcards
Traditional Economy
a basic economic system where customs and traditions are the elements that determine the way trade and commerce are performed.
Command Economy
an economy in which production, investment, prices, and incomes are determined centrally by a 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
a cashless economic system in which services and goods are traded at negotiated rates.
Free Enterprise
an economic system that provides individuals the opportunity to make their own economic decisions, free of government constraints, and as private profit-potential businesses
Capitalism
Capitalism is often thought of as an economic system in which private actors own and control property in accord with their interests, and demand and supply freely set prices in markets in a way that can serve the best interests of society. The essential feature of capitalism is the motive to make a profit.
Socialism
an economic and political system based on collective ownership of the means of production.
Supply/Demand
Demand, in economics, is the willingness and ability of consumers to. purchase a given amount of a good or service at a given price. Supply is the willingness. of sellers to offer a given quantity of a good or service for a given price.
Human Resources
a company’s employees or contractual workforce.
What are the three basic economic questions?
what goods/services will be produced how will it be produced and who will consume the goods and services.
In a command economy, who makes all of the decisions?
government rules everything
