Economic Systems Flashcards
Scarcity
The limited supply of something
What are the 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 based on customs, traditions, and belifs.
Bartering
Trading without using money
Command Economy
All economic decisions are made by the government
Market Economy
Economic decisions are made based on the changes in prices that occur as buyers and sellers interact in the market place
Free Enterprise
Competition between companies( shifts prices of goods/services)
Mixed
Most democratic countries have characteristics of both systems
Economic Continuum
How economically free a country is on a scale of 0 to 100
Nation-State
Country
Communism
No private ownership. Everyone equally owns everything and works together.
Capitalism
Private ownership of everything. Runs off of the idea of free competition.
Supply & Demand
Amount of a product & peoples willingness to buy it.
Human Resource
Workers and their skills.
