Economic Systems Flashcards
Scarcity
The limited supply of something
What are the 3 basic economic questions?
What goods or services are produced, How will goods or services be produced, and who will consume the goods or services.
Traditional Economies
All economic decisions are based on customs,traditions, or 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 these changes in prices that occur as buyers and sellers interact in the market place.
Free enterprise
competition between companies
Mixed economy
Most democratic countries have some characteristics of both systems, so we keep it simple and call them.
The economic Continuum
How free a country is on a scale from 0-100
Nation state
A country that is homogeneous, example japan, same race.
Communism
Everyone is the same and all wealth and property are communally owned.
Capitalism
Industries are owned by private individuals. No government involved.
Human Resources
You, a person and their skills.
Supply and demand
The amount of product available in peoples willingness to buy the product.
