Term
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Definition
The study of economics on a national or complete scale
(tax cuts, unemployment, and entire retail industry) |
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Term
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Definition
The study of individual companies and people making their own decisions in regards to their best interest
(supply and demand, business choices, where to shop) |
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| Three Basic Questions of Economy |
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Definition
- What to produce
- How to produce it
- Who to produce for
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Term
| Types of Economic Systems |
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Definition
- Traditional
- Command
- Socialist
- Free Enterprise
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Term
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Definition
| Farming and agriculture, hunting, found in the 1400's in Europe, business, found in developing or 3rd world countries today. |
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Definition
| The government tell (commands) the suppliers or businesses what to produce. (Communism) |
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Term
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Definition
| Between free enterprise and command, government is involved, but this is because the people want the gov't involved, the gov't provides for basic level of goods (health care, education, etc.) |
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Term
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Definition
Consumers and producers are free to determine what they want to produce and what they want to buy (no government involvment). Also known as a capitalism, free market economy. |
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Term
| MODIFIED FREE ENTERPRISE SYSTEM |
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Definition
| Free Enterprise Sytem with some government involvement (ex. Unitied States's economic system) |
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Term
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Definition
- C- Capital (machinary, buildings, etc.)
- E- Entrepreneur (the person that forms the business)
- L- Land (the land and all the natural resources to be gained from it)
- L- Labor (the people,specialization allows for more effective use of labor)
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Term
| Circular Flow of Economic Activity |
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Definition
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