economic basics Flashcards
Traditional Economy
A traditional economy is a system that relies on customs, history, and time-honored believes.
Command Economy
an economy in which production, investment, prices, and incomes are determined centrally by a government
Market Economy
an economic system in which production and prices are determined by unrestricted competition between privately owned businesses.
Mixed Economy
an economic system in which production and prices are determined by unrestricted competition between privately owned businesses.
Scarcity
the state of being scarce or in short supply; shortage
barter
exchange (goods or services) for other goods or services without using money.
“he often bartered a meal for drawings
Free Enterprise
an economic system in which private business operates in competition and largely free of state control.
Capitalism
an economic and political system in which a country’s trade and industry are controlled by private owners for profit
Socialism
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
Supply/Demand
the amount of a commodity, product, or service available and the desire of buyers for it, considered as factors regulating its price.
Human Resources
the personnel of a business or organization, especially when regarded as a significant asset.
What are the three basic economic questions?
What goods and services should be produced to meet consumer needs? (2) How should they be produced, and who should produce them? (3) Who should receive goods and services?
In a command economy, who makes all of the decisions?
the government
Most countries are what type of economy?
mixed economy
