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 will be produced?
- Who will consume the goods/services?
Traditional Economy
An economic system based on tradition.
Bartering
Trade of goods of equal value.
Command Economy
The government has full control.
Market Economy
The people have full control.
Free Enterprise
The competition between companies.
Mixed Economy
A country with many types of economic systems.
Economic Continuum
A scale from 0-100 where you rank countries based on their freedom percentage.
Nation-State
Country
Communism
A society where everyone owns everything and the government distributes wealth equally.
Capitalism
Private citizens own all means of production and there is no government control.
Human Resources
A person and their skill set.
Supply and Demand
Amounts of a product available and people’s willingness to purchase the product.
