Econ Flashcards
All economic decisions are based on customs, traditions, and beliefs of the past.
Traditional Economy
All economic decisions are made by the government.
Command Economy
Economic decisions are made based on the changes in prices that occur as buyers & sellers interact in the market place.
Market Economy
It is a mix of all the economies.
Mixed Economy
The limited supply of something.
Scarcity
Trading without using money.
Bartering
Competition between companies.
Free Enterprise
Trade and industry are controlled by private owners for profit.
Capitalism
The government controls everything.
Socialism
The ability to produce a good and the desire to purchase the good.
Supply/Demand
The personnel of a business or organization.
Human Resources
What are the 3 basic economic questions?
What will be produced, how will it be produced, and how will the products be distributed.
In a command economy, who makes all the decisions?
The government.
Most countries are what type on economy?
Mixed economy.
