Economic systems Flashcards
scarcity
the limited supply of something
what three basic economic questions are answered by…?
what, how, why
all economic decisions are based on _______.
customs, traditions, and beliefs of the past
the exchange of goods is done through what?
bartering
all economic decisions are made by the what?
government
economic decisions are made based on the changes in prices as buyers & sellers interact in the what?
market place
_______ compitition between _______ (shifts prices of goods/services)
free enterprise; companies
most democratic countries have some characteristics of both systems, so we kept it simple and call them what?
mixed
economic continuum
nation-state
a country
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
amount of a product & peoples willingness or ability to purchase it
