Economics Flashcards
A way that people in a society work together to make and trade things.
Economic System
There is no government control, so people do business on their own. This system is based on old customs and traditions.
Traditional Economy
Goods and services are based on what people want to buy.
Market Economy
The government decides what to produce, how much to produce, and what the prices will be.
Command Economy
If the government gets too involved, it can hurt the market. If it gets too little involved, businesses might act unfairly.
Mixed Economy
Government owns/regulates all aspects of the economy.
Communism
Government owns/regulates some parts of the economy for the benefit of the whole nation; and individuals and private businesses also make their own economic decisions, keeping the profits and accepting the losses.
Socialism
Individuals and private businesses own everything and make economic decisions free from government regulation, keeping profits and accepting
the losses without intervention.
Capitalism
People who work to produce a good or service.
Human Resources
The limited supply of something
Scarcity
Objects that satisfy people’s wants and things people do for us that satisfy our wants.
Goods and Services
The amount of goods available, and how badly people want a good or service.
Supply and Demand
