Economic Terms Flashcards
Traditional Economy
A system that relies on customs, history, and time-honored believes.
Command Economy
An economy in which production, investment, prices, and incomes are determined centrally by a government.
Market Economy
An economic system in which production and prices are determined by unrestricted competition between privately owned businesses.
Mixed Economy
An economic system combining private and public enterprise.
Scarcity
The state of being scarce or in short supply; shortage.
Bartering
exchange (goods or services) for other goods or services without using money.
Free Enterprise
An economic system in which private business operates in competition and largely free of state control.
Capitalism
An economic and political system in which a country’s trade and industry are controlled by private owners for profit.
Socialism
Any of various social systems based on shared or governmental ownership and administration of the means of production and distribution of goods.
Supply/Demand
The amount of a commodity, product, or service available and the desire of buyers for it, considered as factors regulating its price.
Human Resources
He personnel of a business or organization, especially when regarded as a significant asset.
What are the three basic economic questions?
What will be produced, how will it be produced, and how will the output society produces be distributed?
In a command economy, who makes all of the decisions?
Government
Most countries are what type of economy?
Mixed economy
