Economic Systems

Question 1

Scarcity

Answer 1

the limited supply of something

Question 2

The three basic Economic Questions

Answer 2

What goods/services will be produced, How will goods/services be produced, and Who will consume the goods/services?

Question 3

Traditional Economy

Answer 3

All economic decisions are based on customs, traditions, and beliefs

Question 4

Bartering

Answer 4

trading without using money

Question 5

Command Economy

Answer 5

ALL economic decisions are made by the government

Question 6

Market Econamy

Answer 6

Economic decisions are made based on the changes in prices that occur as buyers and sellers interact in the marketplace

Question 7

Free Enterprise

Answer 7

=competition between companies (shifts prices of goods/services).

Question 8

Mixed

Answer 8

Democratic countries that have some characteristics of both systems so we call them Mixed

Question 9

The Economic Continuum

Answer 9

How economically free a country is on a scale of 0-100

Question 10

Nation-state

Answer 10

a country with a government

Question 11

Communism

Answer 11

Everyone is equal and all property is communally owned (government power)

Question 12

Capitalism

Answer 12

Everything is privately owned and ruled by free competition

Question 13

Human Resources

Answer 13

workers and their skills

Question 14

Supply and Demand

Answer 14

amount of a product and people’s willingness ability to purchase it