Economic systems Flashcards
scarcity
the limited supply of something
What are the 3 basic economic questions
- what good/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, tradition, and belifies of the past.
bartering
trading without using money
command economy
all economic desicions are made by the government
market economy
economic decisions are made based on the changes in prices that occur as buyers and sellers interact in the market price
free enterprised
competition between companies
most countries are what type of economic system
mixed
the economic continuum
how free a country is on a scale of 0-100.
nation-state
country that is racially the same. (Japan)
communism
A system in which everyone shares wealth. The government redistributes wealth.
capitalism
The industry is controlled by the private citizens. No government interference.
human resource
a person and their skills
supply and demand
amount of product available and people’s willingness to buy the product.
