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13 Cards in this Set
- Front
- Back
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An economic system in which the government answers the economic questions. (Centrally planned economy, communism) |
command economy |
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An economic system in which the customs of the group determine the answers to the economic questions. |
traditional economy |
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An economic system in which producers and consumers answer the economic questions.
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market economy
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A way a society uses its resources to satisfy its people's wants.
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economic systerm
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The rights of individuals and groups to own resources, goods, and businesses.
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private property rights
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A trade in which both parties believe they are better off having participated.
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voluntary exchange
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All of the buyers and sellers of a particular good, service, or factor of production.
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market
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All of the buyers and sellers of land, labor, capital, or entrepreneurship.
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factor market (resource market)
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All of the buyers and sellers of a particular consumer good or service.
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product market
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A model that economists use to understand how market economies operate.
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circular flow diagram (model)
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A good or service that can be consumed by many people at once and other people cannot be prevented from using |
public good |
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government's roles in circular flow |
buy goods and services from product market, provide public goods and services, collect taxes and make transfer payments |
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transfer payments |
expenditures for which the government receives no good, service, or resource in return (social security payments, welfare, food stamps, unemployment compensation) |
