Economic Systems Flashcards
Scarcity
The limited supply of something.
The three basic economic questions.
The what, how, and who.
Traditional Economy
All economic decisions are based on customs, traditions, and benefits.
Bartering
Trading without using money.
Command Econmy
All economic decisions are made by the government.
Market Economy
Economic decisions are made based on changes in prices that occur as buyers and sellers interact in the market place.
Nation-state
Country
Communism
A society where everyone owns everything.Government distributes wealth.
Capitalism
Private citizens own all means of production. No government control.
Human resources
You. person and their skills.
Supply and demand
Amount of a product available and people’s willingness to purchase a product .
Free Enterprise
An economy where the market determines prices, products, and services rather than the government.
Mixed economy
A system that combines aspects of both capitalism and socialism.
Economic continuum
Based on government control.
