Economic systems Flashcards
Scarcity
The limited supply of something
What are the 3 basic economic questions?
What goods/services will be produced?
How will goods/services be produced?
who will consume the goods/services?
Traditional economy
All economic decisions are made by the community
Bartering
Trading without using money
Command Economy
All economic decisions are made by the government
Market economy
economy decisions are made based on the changes in prices that occur as buyers and sellers interact in the marketplace
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 economy
The economic continuum
How economically free a country is on a scale of 0-100
Nation-state
A country with a government
Communism
Everyone is equal and all property is communally owned
Capitalism
Everything is privately owned and ruled by free competition
Human Resources
Workers and their skills
supply and demand
The amount of something
