Econ Flashcards
traditional economy
all economic decisions are based on customs, traditions, and beliefs
command economy
all economic decisions are made by the government
market economy
economic decisions are made based on changes in prices that occur as buyers and sellers interact in the market place
mixed economy
both are a market and a command economy combined
scarcity
the limited supply of something
bartering
trading without using money
free enterprise
competition between companies (shift prices of goods/services)
capitalism
an economic and political system in which a country’s trade and industry are controlled by private owners for profit
socialism
policy or practice based on the political and economic theory of socialism
supply/demand
the amount of a product available and the people buying it
human resources
department within a business that is responsible for all the things worker-related
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
