Economic Systems Flashcards
Scarcity
the limited supply of something
3 basic economic questions
what good/service will be produced,how will good/services we produced, and who will consume the goods/services
all economic decisions are based on
customs,traditions, and beliefs
the exchange of goods is done through bartering
bartering
all economic decisions are made by the
government
Economic decisions are made based on the changes in prices that occur as buyers and sellers interact in the
prices
free enterprises helps make these decisions
free enterprise
most democratic countries have the some characteristics of both systems so we keep it simple and call them
mixed
command
how free a country is on a scale 0-100
Nation-state
country that is homogeneous/same ethnic group
Communism
everyone is the same and all wealth and property are communally owned.
capitalism
Industries are owned by private indavigials no government interference
Human resource
You, A person and their skills
Supply & Demand
