Economic system Flashcards
the limited supply of something
scarcity
what are the three basic questions
what goods will be provided
how will goods be produced
who will consume the goods
all economic decisions are based on
customs,traditions, and beliefs
bartering
trading without using money
Economic decisions are made based on the changes in prices that occur as buyers and sellers interact in the
market place
all economic decisions are made by the
government
free enterprise
competition between companies
most democratic countries have some characteristics of both systems, so we keep it simple and call them
mixed
how free a country is on a scale of 100
The Economic Continuum
nation-state
country that is ethnically/racially the same.
communism
system in which everyone shares wealth government redistributes wealth
capitalism
industry is controlled by the private citizen. No government interference
Human resources
a person and their skills. you!!
supply and demand
amount of product available and peoples willingness to buy the product.
