Economics Flashcards
All economic decisions are based on customs, traditions, & beliefs.
Traditional Economy
An economic and political system in which a country’s trade and industry are controlled by private owners for profit.
Capitalism
Trading without using money
Bartering
The limited supply of something
Scarcity
Competition between companies(shifts prices of goods/services.
Free Enterprise
All economic decisions are made by the government
Command Economy
Most democratic countries have some characteristics of both systems.
Mixed Economy
A political and economic theory of social organization which advocates that the means of production, distribution, and exchange should be owned or regulated by the community as a whole.
Socialism
Economic decisions are made based on the changes in prices that occur as buyers & sellers interact in the market place.
Market Economy
Studies individual, family, and market investments in various forms of human capital such as education, on-the-job training, and health.
Human Resources
Supply is the amount of a specific good or service that’s available in the market. Demand is the amount of the good or service that customers want to buy.
Supply/Demand
Most countries are what type of economy?
Mixed Economy
What are three basic economic questions?
- What goods/services will be produced?
- How will goods/services be produced?
- Who will consume the goods/services?
In a command economy, who makes all of the desicions?
The government
