Economic system

Question 1

Scarcity

Answer 1

insufficiency or shortness of supply; dearth. rarity; infrequency.

Question 2

What are the three basic economic questions?

Answer 2

what to produce, how to produce it, and who to produce it for.

Question 3

Traditional Economy

Answer 3

an economy is not deeply connected to wider regional trade networks

Question 4

Bartering

Answer 4

to trade by exchanging one commodity for another

Question 5

Command Economy

Answer 5

one in which a centralized government controls the means of production and determines output levels.

Question 6

Market Economy

Answer 6

a type of economic system where supply and demand regulate the economy, rather than government intervention.

Question 7

Free Enterprise

Answer 7

refers to business activities that are not regulated by the government but are defined by a set of legal rules such as property rights, contracts, and competitive bidding.

Question 8

Mixed Economy

Answer 8

is a system that combines aspects of both capitalism and socialism.

Question 9

Economic Continuum

Answer 9

references the 3 economic questions and provides a brief and easy to understand definition of market economy, command economy, and mixed economy.

Question 10

Nation-State

Answer 10

a territorially bounded sovereign polity—i.e., a state—that is ruled in the name of a community of citizens who identify themselves as a nation

Question 11

Communism

Answer 11

is a political and economic ideology that positions itself in opposition to liberal democracy and capitalism

Question 12

Capitalism

Answer 12

refers to an economic system in which a society’s means of production are held by private individuals or organizations

Question 13

Human-Resources

Answer 13

is the division of a business responsible for finding, recruiting, screening, and training job applicants

Answer 14

Supply refers to the market’s ability to produce a good or service, whereas demand refers to the market’s desire to purchase the good or service.