Economic systems Flashcards
scarcity
the limited supply
three basic question
what good / services will be produced
how will good/ services be produced
who will consume the good / services
nation-state
a country that is homogenous
ex japan,sweden
communism
everyone is the same and all wealth and property are communally
capitalism
industrin are owned by private ind
human resource
person and their skills
supply and demand
the amount of product available
Traditional economy
all economic decisions are based on custom and tradition for the past
bartering
trading with using money
command economy
all economic decisions are made by the government
Market economy
Economic decisions are made based on the change in price that occur as buyers & sellers interrupt in the marketplace
Free enterprise
Competition between companies( shifts prices of goods/ services.
Mixed economy
Mo democrats countries have some characteristics of both systems So we keep it simple Call and mixed economy.
The economic continuum
How economically free the places are.
