Econ Flashcards
All economic decision are based on customs, traditions, and beliefs of the past.
Traditional Economy
All economic decisions are made by the government.
Command Economy
Economic decisions are made based on the changes in prices that occur as buyers and sellers.
Market Economy
Most democratic countries have some characteristics of both systems, so we keep it simple.
Mixed Economy
The limited supply of something.
Scarcity
Trading without using money.
Bartering
competition between companies
Free Enterprise
An economic and political system in which a country’s trade and industry are controlled by private owners for profit.
Capitalism
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.
Socialism
The amount of a commodity, product, or service available and the desire of buyers for it, considered as factors regulating its price.
Supply/Demand
The personnel of a business or organization, especially when regarded as a significant asset.
Human Resources
What are the three basic economic questions?
1.What goods/services will be produced?
2. How will goods/services be produced?
3. Who will consume the goods/services?
In a command economy, who makes all of the decisions?
Government
Most countries are what type of economy?
mixed economic systems
