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