Economic Systems Flashcards
Scarcity
The limited supply of something
What are the three basic economic systems?
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 the Government.
Capitalism
Private citizens own all means of production. No Government Control.
Nation-state
Country Examples:Japan,South Korea
Communism
A society where everyone owns everything. Government distributes wealth.
Human Resources
You. Person and their skills.
Supply and Demand
Amount of a product available and peoples willingness to purchase a product.
Market Economy
Economic decisions are made based on the changes in prices that occur as the buyers and sellers interact in 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 Continum
How economically free a country is on a scale of 0-100
