econ Flashcards
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Definition. A traditional economy is a system that relies on customs, history, and time-honored believes.
traditional economy
Alternatively, a command economy is organized by a centralized government that owns most, if not all, businesses and where government officials direct all the factors of production.
Command Economy
The activity in a market economy is unplanned. It is not organized by any central authority but is instead determined by the supply and demand of goods and services
Market Economy
For example, the United States is a mixed economy, as it leaves ownership of the means of production in mostly private hands but incorporates elements such as subsidies for agriculture, regulation on manufacturing, and partial or full public ownership of some industries like letter delivery and national defense.
Mixed Economy
Scarcity
Bartering
Free Enterprise
capitalism
