Economic systems Flashcards
Scarcity
The limited supply of something
Three basic economic questions
what goods/services will be produced, how will goods/services be produced, and who will consume the goods/ services
Traditional Economy
All economic decisions are based on customs, tradition, and belief of the past
Bartering
trading without using money/currency traditional econ systems
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 & sellers interact in the market place
Free enterprise
competition between companies
Mixed economy
most democratic countries have some characteristics of both systems, but some countries are closer than others
Nation State
A country that is homogeneous same esthetic group and same language (japan- sweden)
Communism
Everyone is the same all wealth and property are communally owned
Capitalism
industries owned by private individuals no government
Human resource
You a person and their skills
Supply $ Demand
the amount of product available and peoples willingness to buy products
Economic systems
is a system of production, resource allocation and distribution of goods and services within a society.
