Economic Terms Flashcards
What is Traditional Economy?
An Economy where all economic decisions are based on customs, traditions, & beliefs of the past.
What is Command Economy?
Command economy means all economic decisions are made by the government.
What is Market Economy?
Economic decisions are made based on the changes in prices that occur as buyers & sellers interact in the market place.
what is mixed economy?
An economic system combining private & public enterprise
What is scarcity?
When you have little of something
What is bartering?
Exchange goods for other goods without using money (trade off)
What is free Enterprise?
freedom of private business to operate with little regulation by the government.
What is capitalism?
an economic and political system in which a country’s trade and industry are controlled by private owners for profit.
What is socialism?
When workers or the government own the buildings and tools that makes goods and services
what is supply and demand?
Supply means the markets abillity to prouduce a good demand means the markets want to purchase this item
What are human resources?
Workers and their skills used to prouduce a good or service.
What are the three basic economic questions?
- what will be prouduced
2.how will it be prouduced
3.how will it be distributed
In a command economy, who makes all of the decisions?
The government
Most countries are what type of economy?
Mixed economy
