Economic Systems Flashcards
scarcity
the limited supply of somthing
three basic economic questions
what goods/service will be produced
how will good/services be produced
who will consume the goods/services
traditional economy
all economic decisions are based on decision are based on custom tradition of the past
barting
trading without money using money
command economy
all economic decisions are made by the government
market economy
economic decision are based on the changes in price that occurs as buyers and sellers
free enterprise
competition between companies
mixed ecomany
most democratic countries have some characteristics of both systems
the economic continuum
how economically free a contry is on o scale of 0-100
nation-state
country that is homogeneous
communism
everyone is the same and wealth and property are communally owned
capitalism
industry are owned by private and manuals no government interference
supply and demand
the amount of product avaibale and people willgngness to buys products
human resource
you person and their skill
