Economics Flashcards
All economic decisions are based on customs, traditions, and beliefs of the past
Traditional Economy
All economic decisions are made by the government
Command Economy
Economic decisions are made based on the changes in prices that occur as buyers and sellers interact in the marketplace
Market Economy
A system that combines aspects of both capitalism and socialism.
Mixed Economy
The limited supply of something
Scarcity
Trading without using money
Bartering
The competition between companies
Free Enterprise
An economic system in which private actors own and control property in accord with their interests, and demand and supply freely set prices in markets in a way that can serve the best interests of society.
Capitalism
An economic and political system based on collective ownership of the means of production.
Socialism
the willingness and ability of consumers to. purchase a given amount of a good or service at a given price.
Supply/Demand
people who work to make things
Human Resources
- What goods/services will be produced?
- How will the goods/services be produced?
- WHo will consume the goods/services
What are the three basic economic questions?
The government
In a command economy who makes all the decisions
Mixed
Most countries are what type of economy?
