Economic Systems Flashcards
Scarcity
The limited supply of something.
What are the three basic economic questions?
- What goods/services will be produced?
- How will goods/services be produced?
- Who will consume the goods/services?
Traditional Economy
Economic decisions based on customs, traditions, and beliefs of the past.
Bartering
Trading without using money.
Command Economy
Economic decisions that are made by the government.
Market Economy
Economic decisions made based on the changes in prices that occur as buyers & sellers interact in the marketplace.
Free enterprise
Competition between companies.
Most countries are what type of economic system?
Mixed.
The economic continuum
How free a country is on a scale of 100.
Nation States
Country that is ethnically/racially the same
Communism
A system in which everyone shares wealth Government redistributes wealth.
Capitalism
The industry is controlled by the private citizens. No government interference.
Human Resources.
a person and their skills. you!
Supply and Demand
Amount of product available and people’s willingness to buy the product.
