Econ Flashcards
Traditional economy
People do what their ancestors did.
Command economy
The government controls EVERYTHING.
Market economy
Businesses control everything.
Mixed economy
Combinations of command and market.
Scarcity
The limited supply of something.
Bartering
Trading without using money.
Free Enterprise
Competition between companies (shifts prices of goods/services.
Capitalism
Businesses own everything.
Socialism
The idea that all means of production are controlled by the community.
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
People that are 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
