Economic Systems Flashcards
Scarcity
A limited supply of something
What are the 3 basic economic questions?
1.What goods/ services will be produced
2. how goods/ services will be produced
3.Who will consume the goods/ services.
Traditional Economy
All economic decisions are based on customs traditions and beliefs of the past
Bartering
Trading without using money
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
comp between companies
Economic Continuum
How free a country is on a scale from 1-100
Most democratic countries have some characteristics of both systems so we call them _____________
Mixed
Nation State
Country that is ethnically racially the same ( Example: Japan)
Communism
A system in which everyone shres wealth. Gov. redistributes wealth.
Capitalism
Industry is controlled by the privated citizen. No government interference.
Human Resources
A pErson and their skills.
Supply and Demand
Amount of product available and peoples willingness to buy the product.
