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12 Cards in this Set
- Front
- Back
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Supply |
The quantity of a good or service that a producer will provide each of its possible prices |
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Demand |
The quantity of a product consumers want at each of its possible prices |
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Capitalism |
A type of market system in which private individuals and businesses own most of the resources |
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The wealth of nations |
Book by economist Adam Smith who advocated free enterprise |
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Invisible hand |
The concept of the invisible hand is the belief that the best interest of a society usually are met when people complete to achieve individuals self interests |
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Profit |
The difference between what it cost to make something and price at which it sells |
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Private property |
Resources owned by individuals and companies |
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Freedom of exchange |
This freedom allows buyers and sellers to trade or sell goods and services at whatever terms they can agree on |
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Culture |
A society's entire way of life a societies economic system is one part of its culture |
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Traditional system |
This type of economic system bases economic decisions on what always has been done in the past and traditional systems habits and customs are very important guides to making decisions |
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Command system |
This type of economic system uses a group of leaders or central authority to answer the basic economic questions in these systems government planning heavily influences decisions |
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Market system |
Rely on exchange barter or a network of prices decisions in a market system usually are made by merchants consumers and business people interested in getting the best product for the best price |
