Economic Systems Flashcards
1
Q
Scarcity
A
The idea that land, labour and capital limit what people need.
2
Q
Factors of production
A
The tension between infinate wants and infinate resources
What are thongs people need that are limited
what are limited resources
3
Q
Market/free economy
A
Recources are privately owned
Individuals make decisions on how to use the recourses
people drive econommic decision making
4
Q
mixed economy
A
Some resources are privately and publicly owned.
citizens and gov. both make decisions on what to produce.
citizens and gov. both influence decision making.
5
Q
Planned economy
A
resources are publicly owned
Gov. makes decisions on how to use the resources
consumers have little influence on decision making.
