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11 Cards in this Set

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Economic system
The organization and methods used to determine what goods and services are produced, how they are produced, and for whom they are produced
Traditional economy
A system that answers the What, How, and for Whom questions the way they have always been answered
Command economy
a system that answers the What, How and for Whom questinos by centeral authority
Market economy
an economic system that answers the What,How, and for Whom questions using prices determined by the interaction of the forces of supply and demand
Adam Smith
The father of modern economics who wrote "the wealth of nations" published in 1776
Invisible hand
A phrase that expresses the belief that the best intersts of a society are served when individual consumers and producers compete to achieve their own private interests
mixed economy
An economic system that answers the What, How, and for Whom questions through a mixture of traditional, command, and market systems
Capitalism
An economic system characterized by private ownership of resources and markets
Consumer Sovereignty
The freedom of consumers to cast their dollar votes to buy, or not to buy, at prices determined in competitive markets
Socialism
An economic system characterized by government ownership of resources and centralized decision making
Communism
A stateless, classless economic system in which all the factors of production are owned by the workers and people share in production according to their needs. In Marx's view, this is the highest form of socialism toward which the revolution should strive