Economic Systems Flashcards
big cool
Scarcity
The limited supply of something
What are the three 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 beliefs
Bartering:
Trading without using money
Command economy:
All economic decisions are made by ___
Government
Market economy:
Economic decisions are made based on the changes in prices that occur as buyers and sells interact with the ______
Market place
Free enterprise:
Competition between companies
Most democratic countries have some characteristics of both systems, so we keep it simple and call them ____
Mixed
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:
Amount of a product and peoples willingness or ability to purchase it
