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Types of Economy
7th Grade Social Studies Types of Econ
Term | Definition |
---|---|
Command Economy | Gov makes all the economic decisions (production, price, etc) |
Market Economy | Producers and consumers make the decisions Decisions are based on supply and demand |
Traditional Economy | Economy based on historical practice |
Mixed Economy | Some decisions are made by the Gov, while other decisions are made by producers and consumers |
Human Capital | Value of the skills a person possesses -- the more skills, the higher rank you are |
Voluntary Trade | Trade between buyers and sellers with restriction (EX: Flea Markets) Based on decisions |
Industrialization | Development of manufacturing in a country These Econ. s are usually much stronger |
International Trade | Trade between countries Countries trade specific items like natural resources |