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
All economic decisions based on tradition, beliefs/ and costoms
Bartering
trading without using money
command economy
All economic decisions are made by the government
Market economy
Economy decisions based on changes in prices that occur as buyers and sellers interact in the market place
Free enterprise helps make what decisions
Competition between companies (shifts prices of goods / services)
Most counteries are what type of system
mixed
What is the economic continuum
How command and market place is
nation state
A country with a goverment
communism
everyone is equal and all property is communally owned
capitalism
everything is privately owned and ruled by free compeition
human recources
workers and their skills
supply and demand
amount of a product and peoples willingness or ability to purchase it
