economics Flashcards
Traditional
Costomes, traditions, and beliefs.
Command
All the sins are made by the government.
Market
Economic decisions are made based on the changes in prices that occur all buyers and sellers interact in the marketplace.
Mixed
Most Democratic countries have some characteristics of both systems so we keep it simple and call them…
Scarcity
A limited supply of something
Bartering
A cashless economic system in which services and goods are traded at negotiated rates.
Free Enterprise
An economic system that provides individuals the opportunity to make their own economic decisions, free of government constraints, and as private profit-potential businesses.
Capitalism
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.
Socialism
An economic and political system based on collective ownership of the means of production.
Supply/Demand
The theory that prices are determined by the relationship between supply and demand.
Human Resources
Studies individual, family, and market investments in various forms of human capital such as education, on-the-job training, and health.
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?
A command economy is a system in which a central government makes all economic decisions.
Most countries are what type of economy?
Most nations operate largely as a command or market economy but all include aspects of the other.
