Economic system Flashcards
Nation state
a country with a government
Communism
everyone is equal and all property is communally owned.
capitalism
everything is privaty owned and ruled by free competition
human resources
workers and their skills.
supply and demand
amount of a product and people willingness or abilty to purchase it.
Scarcity
not enough
What are the three basic economic question?
what to produce, how to produce it, and who to produce it for
Traditional Economy
usually centers on survival
Bartering
to trade one thing for another without the use of money
Command Economy
one where the government closely controls the economy
Market Economy
an economic system where two forces, know as supply and demand, direct the production of goods and services
Free Enterprise
freedom of private business to operate with little regulation by the government
Mixed Economy
a combination of a market and a command economy
Economic Continuum
based on government control
