Economic Systems Flashcards
Scarcity
Economic System
What are the three basic economic questions?
What goods/ services will be produced?
how will goods/ services be produced?
who will consume the goods/ services?
Traditional Economy
relies on customs, history, and time-honored believes.
Bartering
exchange for other goods or services without using money.
Command Economy
determines what is produced, how it is produced, and how it is distributed.
Market Economy
two forces, known as supply and demand, direct the production of goods and services.
Free Enterprise
private business operates in competition and largely free of state control.
Mixed Economy
private business operates in competition and largely free of state control.
Economic Continuum
based on government control.
Nation-state
Country, Japan, South Korea
Communism
society where everyone owns everything. ex: government distributes wealth.
Capitalism
Private citizens own all means of production. No Government control.
Human resources
You are a human resource person and their skills
Supply and Demand
amounts of a product available and people’s willingness to purchase a product
