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16 Cards in this Set
- Front
- Back
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economy |
an organized way of providing for the wants and needs of their people |
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traditional economy |
habit and custom dictate economy |
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command economy |
central authority makes most of WHAT, HOW, FOR WHOM decisions |
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market economy |
people and firms act in their own best interests to answer the WHAT, HOW and FOR WHOM questions |
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Social Security |
federal program of disability and retirement benefits that covers most working people |
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inflation |
rise in the general level of prices |
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fixed income |
income that does not increase even though prices go up |
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capitalism |
private citizens own factors of production |
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free enterprise |
competition is allowed to flourish with minimum of government interference |
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voluntary exchange |
act of buyers and sellers freely and willingly engaging in market transactions |
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private property rights |
privilege that entitles people to own and control their possessions as they wish |
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profit |
extent to which persons or organizations are better off at the end of a period than at the beginning |
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profit motive |
driving force that encourages people and organizations to improve their material well being |
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competition |
the struggle among sellers to attract consumers while lowering costs |
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consumer sovereignty |
role of consumer as sovereign of market (customer is always right) |
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mixed economy |
people carry economic affairs freely but are subject to some government intervention and regulation |
