Economic Systems Flashcards
all economic decisions are based on customs, traditions, and beliefs of the past.
traditional economy
all Economic decisions are made by the government.
command economy
economic decisions are made based on the changes in prices that occur as buyers and sellers interact in the market place.
market economy
most democratic countries have some characteristics of two systems so we keep it simple and call it this.
mixed economy
The limited supply of something
Scarcity
Competition between companies
Free Enterprise
market economy you get to decide everything
capitalism
an economic and political system based on collective ownership of the means of production
socialism
the willingness and ability to be able to purchase something and the amount you have to pay for it.
supply / demand
workers and their skills used to produce goods and provide services.
human resources
what are the three basic economic questions?
what goods/services will be produced? how will goods/services be produced? who will consume the goods/services?
in a command economy, who makes all of the decisions?
the government.
most countries are what type of economy?
mixed economy.
Trading without using money.
bartring
