Econ cards Flashcards
all economic decisions are based on customs tradition beliefs
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 interact in the marketplace
Market Economy
an economic system combining private and public enterprise.
Mixed Economy
the gap between limited—that is, scarce—resources and theoretically limitless wants.
Scarcity
a cashless economic system in which services and goods are traded at negotiated rates.
Bartering
an economy where the market determines prices, products, and services rather than the government.
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
Supply refers to the market’s ability to produce a good or service, whereas demand refers to the market’s desire to purchase the good or service.
Supply/Demand
the division of a business responsible for finding, screening, recruiting, and training job applicants.
Human Resources
what will be produced, how will it be produced, and how will the output society produces be distributed?
What are the three basic economic questions?
the government
In a command economy, who makes all of the decisions?
mixed economy
Most countries are what type of economy?
