Economics Flashcards
Economic System
Is a way that people in a society work together to make and trade things.
Traditional Economy
There is no government in control, so people do business on their own. This system is based on old customs and traditions.
Market Economy
Is when individuals own and control businesses instead of the government in this system. Goods, and services are made based on what people wanna buy,.
Command Economy
A command Economic System, also known as the socialist or communist system, is when the government or a single leader makes all the decisions, they decide what to produce, how much to produce, and what prices will be.
Mixed economy
In a mixed economy some business are privately owned. The main idea behind a mixed economy is that can take the best part of both system. However, it can be tricky to find the right balance. If the government gets to involved, it can hurt the market. If it gets I little too involved businesses might act unfairly.
COMMUNISM
In this system the government owns the businesses and can move resources around as needed.For example, they might change where workers are assigned to meet long term goals. These plans can take years to complete, like the five year plans used in the Soviet union.
Socialism
In this system the government owns the businesses and can move resources around as needed.For example, they might change where workers are assigned to meet long term goals. These plans can take years to complete, like the five year plans used in the Soviet union.
Capitalism
in capitalism, private individuals use their money to create goods and make a profit. However, this can lead to a few people becoming wealthy, which can cause problems in society. Sometimes, big companies elements of both capitalism and command economies.
Scarcity
The limited supply of something.
Human Resources
People who work to produce a good or service.
Goods and services
Goods 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 goods available, and Demand is how badly people want a good or service.
