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12 Cards in this Set
- Front
- Back
economic system
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a particular set of institutional arrangements and a coordinating mechanism for producing goods and services
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command system
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an economic system in which most property resources are owned by the government and economic decisions are made by a central government body
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market system
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an economic system in which property and resources are privately owned, and markets and price are used to direct and coordinate economic activities.
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private property
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the right of private persons and firms to obtain, own, control, employ, dispose of, and bequeath land, capital, and other property.
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freedom of enterprise
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the freedom of firms to obtain economic resources, to use these resources to produce products of the firm's own choosing, and to sell their products in markets of their choice
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freedom of choice
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enables owners to employ or dispose of their property and money as they see fit.
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self interest
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that which each firm, property owner, worker, and consumer believes is best for itself
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competition
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buyers and sellers competing with one another.
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specialization
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the use of the resources of an individual, a firm, a region, or a nation to produce one or a few goods or services
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division of labor
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dividing the work required to produce a product into a number of different tasks that are performed by different workers
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consumer sovereignty
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determination by consumers of the types and quantities of goods and services that will be produced with the scarce resources of the economy
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dollar votes
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the "votes" that consumer and entrepreneurs cast for the production of consumer and capital goods, respectively, when they purchase them in product and resource market
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