Economic Systems Flashcards
Scarcity
The limit supply of something
Nation-state
a country that is homogenous.
communism
everyone is the same and all wealth and property are communally owned.
capitalism
industries are owned by private and no government interference.
human resources
you. Person and their skills.
supply and demand
the amount of product available and peoples willingness to buy the product.
What are the three basic economic questions?
- What goods and services should be produced to meet consumer needs? 2. How Should they be produced, and who should produce them? 3. Who should receive goods and services?
traditional Economy
A system that relies on customs, history, and time-honored beliefs.
Bartering
An exchange of goods and services without using money.
command
The government determines what is produced, how it is produced, and how it is distributed
Market
an economic system in which production and prices are determined unrestricted competition between privately owned businesses.
Free enterprise
an economy where the market determines prices, products, and service rather than the government.
Mixed Economy
an economy system were combining private and public enterprises.
Economy Continuum
based on governments control.
