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29 Cards in this Set
- Front
- Back
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economic system |
the way in which a nation allocates its resources among its citizens |
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factors of production |
the resources used to produce goods and services: labour, capital, entrepreneurs, natural resources |
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command economy |
an economic system in which government controls all or most factors of production and makes all or most production decisions |
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market economy |
an economic system in which individuals control all or most factors of production and make all or most production decisions |
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communism |
a type of command economy in which the government owns and operates all industries |
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market |
an exchange process between buyers and sellers of a particular good or service |
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input market |
firms buy resources that they need in the production of goods and services |
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output market |
firms supply goods and services in response to demand on the part of consumers |
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capitalism |
an economic system in which markets decide what, when, and for whom to produce |
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mixed market economy |
an economic system with elements of both command economy and a market economy; typical of most nations economies |
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privatization |
the transfer of activities from the government to the private sector |
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deregulation |
a reduction in the number of laws affecting business activity |
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competition act |
prohibits a variety of business practices that lessen competition |
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lobbyist |
a person hired by a company or industry to represent its interests with government officials |
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trade association |
organization dedicated to promoting the interests and assisting the members of a particular industry |
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market |
exchange process between buyers and sellers of a particular good or service |
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demand |
willingness and ability of buyers to purchase a product or service |
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supply |
the willingness and ability of producers to offer a good or service for sale |
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law of demand |
the principle that buyers will purchase more of a product as price drops |
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law of supply |
principle that producers will offer (supply) more of a product as price drops |
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demand and supply schedule |
assessment of the relationships between different levels of demand and supply at different price levels |
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demand curve |
graph showing how many units of a product will be demanded at different prices |
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supply curve |
graph showing how many units of a product will be supplied at different prices |
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market price (equilibrium price) |
profit-maximizing price at which the quantity of goods demanded and the quantity of goods supplied are equal |
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private enterprise |
an economic system characterized by private property rights, freedoms of choice, profits and competition |
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perfect competition |
a market or industry characterized by a very large number of small firms producing an identical product so that none of the firms has any ability to influence price |
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monopolistic competition |
a market or industry characterized by a large number of firms supplying products that are similar but distinctive enough from one another to give firms some ability to influence price |
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oligopoly |
a market or industry characterized by a small number of very large firms that have the power to influence the price of their product/resources |
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monopoly |
a market or producer with only one producer, who can set the price of its product/ resources |
