Economic Systems Flashcards
What is Scarcity
The limited supply of something.
What are the three basic economic questions
- What goods/services will be produced 2. How goods/services will be produced 3. Who goods/services will be produced.
What is Traditional Economy
All economic decisions are based on customs, traditions and beliefs of the past.
What is Bartering
Trading without using money.
What is Command Economy
All economic decisions are made by the government.
What is market Economy
Economic decisions are made based on the changes in prices that occur as buyers and sellers interact in the market place.
What is Free Enterprise
Competition between companies (shifts prices of goods/services.)
What is Mixed Economy
An economic system combining private and public enterprise.
What is The Economic Continuum
Based off of government control.
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