Three types of economies
free market economy, central or command economy, traditional economy
free market economy
economy in which the market determines what goods and services are produced. Examples: United States, Canada, Japan
central or command economy
economy in which the government decides how many of which goods are produced and sets prices. Example: North Korea, Cuba
economy in which social roles and culture determine the goods and services that are produced and which consumers are allowed to buy goods and services.
the production, distribution, and consumption of goods and services
a tangible product which may be sold to a consumer or another industry.
something that may be used to create goods and services.
Resources are not evenly distributed around the world.
Some resources are privately owned while others are publicly owned.
resources that can be replaced
a resource not created by people.
tools, buildings and other physical things that are used to make goods
the way that societies turn resources into goods and services
total revenue minus costs
if you can use something for one thing, then you cannot use it for another
workers with appropriate skills and knowledge to make goods or services. Labor may be mental, physical or both.
long lasting, more expensive items mostly used by businesses
money deposited and held at a bank for use in checking or savings.
card issued by a bank that permits immediate electronic transfer of funds from the holder's account for payment of purchases.
money owed to a lending institution for money borrowed
a document that acknowledges a debt.