Economic Systems Flashcards
Define Scarcity
The limited supply of something.
What are the three basic economic questions?
1.What goods/services will be produced?
2.How will goods/services be produced?
3.Who will consume the goods/services?
What is Traditional Economy?
Traditional Economy is when people make what they always made and do the same things their parents did.
What is bartering?
Bartering is when you trade without using money.
What does Command Economy mean?
Command Economy is when all economic decisions are made by the government.
What does Market Economy mean?
Market Economy is when Economic decisions are made based on the changes in prices that occur as buyers and sellers interact in the marketplace.
What does Free Enterprise mean?
Free enterprise is a competition between companies (shifts prices of goods/services).
What does Mixed mean in the Economy?
Mixed is when you have characteristics of both economic systems.
.What is the Economic Continuum?
The Economic Continuum bases the country on how free a person is with businesses.
Whats a nation-state.
Country.
What’s communism.
A society in which all property is publicly owned and each person works and is paid according to their abilities and needs.
What’s capitalism.
an economic and political system in which a country’s trade and industry are controlled by private owners for profit.
Human Resources.
A person and their skills.
Supply and Demand
Amounts of product available and people willingness to purchase a product.
