Economic systems Flashcards
scarcity
The limited supply of something
what are the three basic economic questions
what goods/services will be produced How goods/services be produced Who consumes the goods/services
Traditional Economy
All economic decisions are based on Customs,traditions & beliefs of the past.
Bartering
Trading without using money
Command Economy
All economic decisions are made by the Government
Market Economy
economic decisions are made based on the changes and prices that occur as buyers and sellers interact in the marketplace.
Free enterprise
competition between companions(shifts prices of good/services
mixed economy
most democratic countries have some characteristics of both systems comma so we keep it simple and call them mixed economy
The Economic Continuum
how we control the fee of country on a scale of 1 - 100
Nation-state
county
communism
a society where everyone own everything . :Government distributes wealth .
capitalism
Private citizens own all means of a product and no Government control
human resources
a person and there skills
supply and demand
amount of a product available and people willingness to purchase a product
