Economic Systems

Question 1

Scarcity

Answer 1

The limited supply of something

Question 2

What are the three basic economic questions

Answer 2

WHAT goods services will be produced.
HOW will goods services be produced.
Who will consume the goods services.

Question 3

Traditional Economy

Answer 3

All economic decisions are based on customs,traditions, and beliefs.

Question 4

Bartering

Answer 4

Trading without using money .

Question 5

Command economy

Answer 5

All economic decisions are mad by the government.

Question 6

Market Economy

Answer 6

Economic decisions are made based the changes in prices that occur as buyers and sellers interact in the marketplace.

Question 7

Free enterprise

Answer 7

Helps make these decisions. Free enterprise= competition between companies
(shift prices of goods/services)

Question 8

Mixed economy

Answer 8

Most democratic countries have some characteristics of both systems so we keep simple and call them mixed economy.

Question 9

Economic Continuum

Answer 9

How economically free a country is on a scale of 0-100.

Question 10

Nation-state

Answer 10

a country with a government

Question 11

Communism

Answer 11

Everyone is equal and all property is communally owned.
(government power)

Question 12

Capitalism

Answer 12

Everything is privately owned and ruled by free competion.

Question 13

Human Resources

Answer 13

Workers and their skills

Question 14

Supply and Demand

Answer 14

Amount of a product and people’s willingness or ability to purchase it.