economics terms Flashcards
basic customs and traditions
Traditional Economy
system is often referred to as a socialist or communist system
Command Economy
production is owned and controlled by private enterprise rather than the government.
Market Economy
but also governments involvement through regulation and other forms of intervention. Subsidies, tariffs, and quotas are just some interventionist tools
Mixed Economy
the state of being scarce or in short supply shortage.
Scarcity
exchange (goods or services) for other goods or services without using money.
Bartering
an economic system in which private business operates in competition and largely free of state control.
Free Enterprise
an economic and political system in which a country’s trade and industry are controlled by private owners for profit.
Capitalism
political and economic system in which property and the means of production are owned in common, typically controlled by the state or government.
Socialism
The law of demand holds that the demand level for a product or a resource will decline as its price rises, and rise as the price drops.
Supply/Demand
studies individual, family, and market investments in various forms of human capital such as education, on-the-job training, and health.
Human Resources
what will be produced, how will it be produced, and how will the output society produces be distributed?
What are the three basic economic questions
In a command economy, who makes all of the decisions?
the government
Most countries are what type of economy?
mixed economy
