economic system Flashcards
Scarcity
The Limited supplies of something
Three basic economic questions are…
What good and services will be produced. how will goods and services be produced. who will consume the goods and services.
Traditional economy
All economic decisions are based on custom traditions and beliefs
Bartering
Trading without using money
Command economy
All economic decisions are made by the government
1
Market economy
Economic decisions are made based on changes in prices that occur as buyers and sellers interact with the marketplace
Free enterprise
Competition between businesses
most democratic countries have some characteristics of both systems so we call them…
mixed
The economic continuum
charts of command and Market economies
nation state
country that is the same ethnic group
communism
everyone’s the same
capitalism
company owned by privet indavidual
human resourses
you.
supply and demand
the amount of product and peoples demand.
