Economic Systems Flashcards
Scarcity
The limited supply of something. The demand for goods/services is greater than the availability.
Each country must ask three basic economic questions:
What goods/services will be produced?
How will goods/services be produced?
Who will consume the goods/services?
All economic decisions are based on ____,____,____ of the past(Traditional Economy)
Traditions, customs, and beliefs
Bartering
Trading without using money
All economic decisions are made by the _____(Command Economy)
Government
Economic decisions are made based on the changes in prices that occur as buyers and seller interact in the ____.
Market Place
Free Enterprise
Competition between companies (shifts prices of goods/services)
Most democratic countries have some characteristics of both systems, so we keep it simple and call them _____
Mixed Economic
The Economic Continuum
How economically free a country is on a scale of 0-100
Nation-State
Country (Fancy term for a 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.
Human Resources
The set of people who make up the workforce of an organization, business sector, industry, or economy. Workers and their skills.
Supply and Demand
Amount of a product and people willingness to buy it.
