Economic System Flashcards
Scarcity
The demand for goods/service is greater than the availability. In other words, everyone wants something that has a limited number made.
What who and how
3 economic questions
Traditional economy
based off all the traditions
Bartering
trading without money
Market economy
economic decisions are made based in change of price of buyers and sellers
Mixed economies
when you have characteristics of both systems
The economic continuum
how free the people are in money
Command economy
All based off government
Economic system
plan on how to use limited resources
Nation state
country
Communism
No private ownership. Everyone equally owns everything and work together
Capitalism
Private ownership of everything. Runs off of the idea of free competition.
Supply & Demand
Amount of product & people willingness to buy
Human Resource
Workers and their skills
