Economic Systems Flashcards
What does scarcity mean?
Limited supply of something
What are the three economic questions?
What goods/services will be produced?
How will goods/services be produced?
Who will consume the goods/services?
All economic decisions are based on..
Customs, traditions and beliefs
Trading without using money is…
Bartering
All economic decisions are made by the…
Government
What is a Market Economy?
People and business control everything
Competition between companies is?
Free Enterprise
Most democratic countries have some characteristics of both systems, so we keep it simple and call them…
Mixed
Economic Continuum
Countries are ranked on how economically free they are on a scale of 1-100
A country that is ethnically racially the same (Example: Japan)
Nation-state
A system in which everyone shares wealth. Government redistributes wealth.
Communism
Parliamentary Democracy is controlled by the private citizens. No government interference.
Capitalism
A person and their skills
Human-Resources
Amount of product available and people’s willingness to buy the product.
Supply and Demand
