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 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 based on the changes in prices that occur as buyers and sellers interact in the market place.
free enterprise
competition between companies ( shifts of goods/ services)
Most democratic countries have some characteristics of both systems so we keep it simple and call them..
Mixed!!!
The economic Continuum
how free a country on a scale to 0 to 100
Nation State
Country that is ethnically / racially the same (japan)
Communism
A system in which everyone shares wealth with government
Capitalism
Industry is controlled by the private citizen No government interference
Human Resources
A person and their skills
Supply and Demand
amount of product available peoples willingness to buy the product
