economic systems Flashcards
goods
houses, food, clothing
services
teachers, doctors, dishwashers
trade
is the buying selling and exchanging of goods and services
domestic trade
trade within a nation
international trade
trade between nations
benefits of trade
improved standard of living
increased productive capacity
increased earnings for a nation
standard of living
is the level of material well-being that a Nation enjoys
specialization
which is the producing and exporting of those goods that a nation is best suited to produce
a Nation’s system of public works, with their buildings, equipment and workers, is known as its
infrastructure
export
send out and sell to other nations the goods a nation produces
import
bring in and buy from other Nations goods
what is the expenditure of something in order to achieve a goal
cost
economic systems must answer 3 questions
What to make (produce)?
How and by whom should its product be made?
Who gets What’s made?
major economic systems
traditional economy
market economy
command economy
most people in a traditional economy are farmers
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