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16 Cards in this Set

  • Front
  • Back
an organized way of providing for the wants and needs of their people
economy, or economic system
the allocation of scarce resources, and nearly all other economic activity, stems from ritual, habit, or custom
traditional economy
economy in which a central authority makes most of the what, how, and for whom decisions.
command economy
people and firms act in their own best intrests to answer the what, how, and for whom questions
market economy
a federal program of disability and retirement benefits that covers most woorking people
social security
a rise in general level of prices
inflation
an income that does not increase even though prices go up
fixed income
where private citizens own the factors of production
capitalism
competition is allowed to flourish with a minumun government interference
free enterprise
the act of buyers and sellers freely and willingly engaging in market transactions
voluntary exchange
the privilege that entitles people to own and control their possesions as they wish
private propety rights
the extent to which persons or orginazations are better off at the end of a period than they were in the beginning
profit
the driving force that encourages people and organizations to improve their material well-being
profit motive
the struggle amoung sellers to attract consumers while lowering costs
competition
role of the consumer as ruler of the market when determining the types off goods and services produced
consumer sovereignty
where people can carry on their economics affairs freely, but are subject to some government interference and regulation
mixed economy, or modified private enterprise economy