Economic Systems Flashcards
Scarcity
the limited supply of something because of this, countries must make a plan of how to use these limited resources. This “plan” is called an plan.
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
All economic decisions are based on customers of the past.
Barting
Trading without using money.
Command Economy
All economic decisions are made by the Government.
Market Economy
Economic decisions are made based on the changes in prices that occur as buyers and sellers interact in the marketplace.
Free enterprise
Free enterprise= companies (shifts prices of goods/services
mixed
Most democratic countries have some characteristics of both system, so we keep it simple and call them mixed
The Economic Continuum
How economically free a country is on a scale of 0 -100
Nation State
A country that is homogenous.(Same race group) Ex. Japan Sweden
Communism
Everyone is the same and wealth and property are communally owned.
Capitalism
Industries are owned by private individuals no government interference.
Human Resources
You as a person and their skills.
Supply and Demand
The amount of product available and people’s willingness to buy the product.