Economic systems Flashcards
scarcity
limited supply of something
what are the 3 basic economic questions
what goods will be produced
how will goods be produced
who will consume the product
traditional economy
a system that relies on customs, history, and time-honored believes.
bartering
Bartering is the exchange of goods or services. A barter exchange is an organization whose members contract with each other (or with the barter exchange) to exchange property or services.
command economy
an economy in which production, investment, prices, and incomes are determined centrally by a government.
market economy
a type of economic system where supply and demand regulate the economy, rather than government intervention.
free enterprise
business activities that are not regulated by the government but are defined by a set of legal rules such as property rights, contracts, and competitive bidding
mixed
The monarch serves as a symbolic head of state, while the elected parliament holds the real power to make laws and govern the country.
economic continuum
how free a country is on a scale of 0 to
