economic systems Flashcards
Scarcity
The limited supply of something.
What are the 3 basic economic questions?
What goods/services will be produced? How will goods/services be produced? Who will consume the goods/service?
Traditional Economic
All economic decisions are based on custom, tradition, and beliefs of the past.
Bartering
Trading without using money.
Command Economy
All economic decisions are made by the government.
Nation State
Country that’s ethnically/racially the same (Ex. Japan).
Communism
System in which everyone shared wealth; government redistributes wealth.
Capitalism
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.
Market Economic
Economic decisions are made based on the changes in prices that occur as buyers & sellers interact in the market place.
Free enterprise
Free enterprise = competition between compaines (shifts prices of goods/services).
Mixed
Most democratic country have some characteristics of both systems, so we keep it simple and call them: mixed.
continuum
How free a country is on a scale from 0 to 100?
