Economics Flashcards
economic system
an economic system is a way that people in a society work together to make trade things.
traditional economy
there is no government control so people do business on their own this system is based on old customs.
market economy
when individuals own and control business instead of the government, in this system , goods and services are made based on what people want to buy.
command economy
when the government or a single leader makes all the decisions.
mixed economy
a common system in many developed countries.
communism
the government owns/ regulates all aspects of the ecconomy.
socialism
The government owns / regulates some parts of the economy for the benefit of the whole nation.
capitalism
individuals and private business own everything and make economic decisions free from government regulation keepings the profits.
human resources
people work to produce a good or a service.
scarcity
the limited supply of something.
good and services
good are objects that satisfy people’s wants and services are things people do for us that satisfy our wants.
supply and demand
supply is the amount of good avaliable and demand is how badly people want a good or service.
