Economics systems Flashcards
Scarity
The limited supply of something
3 main questions
What good/services will be produced
How will good/services be produced
Who will consume the goods/services
Traditional
All economics decisions are based on custom tradition and belief of the past
Bartering
trading without using money
Command
All economic decisions are made by the government
Market
Economics decisions are made based on the changes in prices that occur as buyers and sellers interact in the market place
Free enterprise
Competition between companies ( shifts prices of good/services)
Mixed
Most democratic countries have some characteristics of both systems, so we keep it simple all call them mixed.
The economic continuum
How economicly free a country is on a scale of 100
Nation state
country
communism
no private ownership, everyone equally owns everything and work together
Capitalism
Private ownership of everything runs off of the idea of free competition.
Supply and demand
Amount of product and product people willingness to buy it.
Human resource
Workers and their skills
