Economic Systems Flashcards
Scarcity
A limited supply of something
What are the 3 basic economic questions
What goods/services will be produced?
How will goods/services be produced?
Who will consume the goods/services?
Bartering
Trading without any money
Traditional economy
All economic decisions are based on customs, traditions, & beliefs in the past
Market economy
Economic decisions are made based on the changes in prices that occur as buyers & sellers interact in the market place
Free enterprise
Competition between companies (shifts prices of goods/services)
Mixed economy
Most democratic countries can be known as this
The Economic Continuum
How economically free a country is on a scale of 0-100
Command economy
All economic decisions are made by the government
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 people’s willingness or ability to purchase it
