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11 Cards in this Set
- Front
- Back
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Economic system
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The organization and methods used to determine what goods and services are produced, how they are produced, and for whom they are produced
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Traditional economy
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A system that answers the What, How, and for Whom questions the way they have always been answered
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Command economy
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a system that answers the What, How and for Whom questinos by centeral authority
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Market economy
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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
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Adam Smith
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The father of modern economics who wrote "the wealth of nations" published in 1776
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Invisible hand
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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
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mixed economy
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An economic system that answers the What, How, and for Whom questions through a mixture of traditional, command, and market systems
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Capitalism
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An economic system characterized by private ownership of resources and markets
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Consumer Sovereignty
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The freedom of consumers to cast their dollar votes to buy, or not to buy, at prices determined in competitive markets
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Socialism
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An economic system characterized by government ownership of resources and centralized decision making
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Communism
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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
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