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ECONOMICS
review of basic economic terms
Term | Definition |
---|---|
Traditional Economy | answers the economic questions by what has been done in the past |
Command Economy | answers the economic questions by what a central authority decides |
Market Economy | answers the economic questions by what individuals and businesses decide |
Mixed Economy | answers the economic questions by combining both individuals and government control |
Economy | the wealth and resources of a country in terms of what goods and services they produce and consume |
Supply | the amount of resources, goods, or services sellers are willing to sell at possible prices |
Demand | how much people want of a good or service at certain prices at a certain time |
Interdependence | people, businesses, and nations depend on the goods and services of others |
GDP per capita | measure of a country's economic output divided by the population of the country |
Specialization | goods and services are produced in better quality and at faster speeds when people focus on producing a few things |