Economics Flashcards
Economic system
A way that people in a society work together to make and trade this.
Traditional economy
There is no government control, people do business on their own.
Market economy
Private individual use their money to create goods and a profit.
Command economy
The Government or a single leader makes all the decisions.
Mixed economy
A common system in many developed countries.
Communism
Government owns/regulates all aspects of the economy.
Socialism
A common system in many developed countries.
Capitalism
Private individuals use their money to produce a good or a service.
Human resources
People who work to produce a good or a service.
Scarcity
The limited supply of something.
Goods and services
Goods are objects that satisfy people’s wants, services are things people do for us that satisfy our wants.
Supply and demand
Supply is the amount of goods available, and demand is how badly people want a good or service.
