Chapter 6 Economic Systems Vocabulary

What is scarcity?

• When the government makes decisions about what to produce

• When customs and traditions determine what to produce

• When there is not enough of something to satisfy everyone's wants or needs

• When there is an abundance of goods and resources

What is a traditional economy?

• A system where customs and traditions determine what to produce

• A mix of both market and command economies

• An economy where the government makes decisions about what to produce

• An economy where what and how much to produce is decided by individuals and businesses

What is a market economy?

• An economy where what and how much to produce is decided by individuals and businesses

• When there is an abundance of goods and resources

• When there is not enough of something to satisfy everyone's wants or needs

• An economy where the government makes decisions about what to produce

What is a command economy?

• A mix of both market and command economies

• A system where customs and traditions determine what to produce

• An economy where the government makes decisions about what to produce

• An economy where what and how much to produce is decided by individuals and businesses

What is a mixed economy?

• A mix of both market and command economies

• An economy where the government makes decisions about what to produce

• When there is not enough of something to satisfy everyone's wants or needs

• When there is an abundance of goods and resources

What are goods?

• Actions that people do for others

• The amount of goods or services that people want or need

• Physical things that people want or need

• The amount of goods or services available

What are services?

• The amount of goods or services available

• Actions that people do for others

• Physical things that people want or need

• The amount of goods or services that people want or need

What is supply?

• Actions that people do for others

• The amount of goods or services available

• Physical things that people want or need

• The amount of goods or services that people want or need

What is demand?

• Actions that people do for others

• The amount of goods or services available

• The amount of goods or services that people want or need

• Physical things that people want or need

Who are consumers?

• People who determine what to produce

• People who buy and use goods or services

• People who produce goods or services

• People who control the government