economic systems Flashcards
scarcity
the limited supply of something
what are the three basic economic questions
what, who, and where
bardering
trading without using money
free enterprise
competition between companies
traditional economey
a system that relies on customs, history, and time-honored believes
command economey
a system in which a central government makes all economic decisions.
Market Economy
an economic system where two forces, known as supply and demand, direct the production of goods and services.
Mixed Economy
an economy organized with some free-market elements and some socialistic elements
Economic Continuum
The economic continuum is based on government control. More government control means the closer a country is to a command economy. Less government control means the closer a country is to a market economy.
Nation-State
a system of organization in which people with a common identity live inside a country with firm borders and a single government.
Communism
a type of government as well as an economic system (a way of creating and sharing wealth).
Capitalism
an economic system in which private individuals or businesses own capital goods.
Human-Resources
the division of a business responsible for finding, recruiting, screening, and training job applicants.
Supply and Demand
Supply refers to the market’s ability to produce a good or service, whereas demand refers to the market’s desire to purchase the good or service.
