Unit 4 Economics of Europe

Front

What is a traditional economy?

Back

An economy where people use the same work methods and tools generation after generation.

Front

What are the three basic questions every economic system must answer?

Back

What, how, and for whom to produce.

Front

How do traditional economies exchange goods?

Back

By bartering.

Front

What does it mean to be literate?

Back

To be able to read and write in one's own language.

Front

What type of economic system do most countries have?

Back

Mixed economy.

Front

What is a mixed economy?

Back

An economic system that combines elements of both market and command economies.

Front

What is bartering?

Back

The exchange of goods and services without using money.

Front

What is a command economy?

Back

An economic system where the government makes all decisions about the production and distribution of goods.

Front

What is a market economy?

Back

An economic system where decisions about production and consumption are made by individual consumers and businesses.

Front

What does 'for whom to produce' mean?

Back

It refers to determining who will receive the goods and services produced.