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 prices that occur as buyers and sellers interact in the market place
Market Economy
Most democratic countries ave some characteristics of both systems so we keep it simple and call them mixed
Mixed Economy
having a short supply
Scarcity
exchange (goods or services) for other goods or services without using money.
Bartering
an economic system in which private business operates in competition and largely free of state control.
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 law of demand holds that the demand level for a product or a resource will decline as its price rises, and rise as the price drops.
Supply/Demand
is 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?
economic system
In a command economy, who makes all of the decisions?
the government
Most countries are what type of economy?
mixed
