government economic basics Flashcards
scarcity
the limited supply of something.
what are the 3 basic economic questions
- what good/services will be produced
2.how will goods/service be produced - who will consume the good/service
traditional economy
all economics decisions are made on customs of the past.
bartering
trading without using money.
command economy
all economic decisions are made by the government.
market economy
Economic decisions are made based on the changes in prices that occur as buyers and sellers interact in the market price.
mixed economy
an economic system combining private and public enterprise.
economic continuum
how free a country is based on 0%-100%.
free market
one without government intervention or regulation.
nation state
a country with a goverment
communism
everyone is equal and all property is communally owned.
capitalism
everything is privately owned and ruled by free competition.
human resource
workers and their skills
supply and demand
amount of product and people who are willingness or ability to purchase it.
