Economic Flashcards
All economic decisions 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 price that occur as buyers and sellers interact in the marketplace
Market Economy
Most democratic countries have some charchtheritstcs of both systems so we keep it simple and call it …
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
more people demand it more supplies made
Supply/Demand
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 personnel of a business or organization, especially when regarded as a significant asset.
Human Resources
What are the three basic economic questions
what will be produced, how will it be produced, and how will the output society produces be distributed
In a command economy, who makes all of the decisions
the government
Most countries are what type of economy
command or market economy
