Economy Types
A system that deals with the production, distribution and consumption of goods and services?
What is an Economic System?
Resources are limited, meaning they are low and could run out.
What is Scarcity?
Tangible/Real items that can bought or sold.
What are goods?
The starting point of all production. Involves the extraction and collection of natural resources directly from Earth.
What is the Primary Sector?
The government or other central authority makes all the economic decisions and individuals have little influence.
What is a Command Economy?
How much of something is available?
What is Supply?
Intangible actions done by people; help or work provided directly to the public
What are services?
Adds value to raw materials by changing their form.
Example- turning cotton into a shirt
What is the Secondary Sector?
Economic decisions are made by individuals who compete for PROFITS based on supply and demand.
What is a Market Economy?
How much people want something
All types of businesses that are related to the same good or service
What is an Industry?
Provides services to people and businesses, largest sector in many modern economies.
What is the Tertiary sector?
Economic activities are centered on the family, tribe, or ethnic group.
What is a Traditional Economy?
What you give up when you choose something else
What is Opportunity cost?
All manmade objects and money needed to make products or perform services
What is Capital?
Focuses on intellectual activities. INDUSTRY that focus's on knowledge and information.
What is the Quarternary sector?
Combines economic systems. The government and individuals share the economic decisions.
What is a Mixed Economy?
The amount buyers are willing to give to get something
What is Price?
A person who risks starting a business to earn a profit
What is an Entrepreneur?
A restaurant worker would be example of what type of sector?