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22 Cards in this Set

  • Front
  • Back
Traditional Economy
an economy based on a society's values and customs and traditions.
command Economy
relies on governmnt officals to answer economic questions
Market Economy
individuals answer the 3 basic econimic questions
the free exchange of goods and services
the impulse that encourages people to fulfill their needs and wants
something that encourages you to behave in a particular way
mixed economy
combines elements of traditional, market, and command economic models to answer the three basic economic questions
authoritarian socialism
mixed economies that are closest to the pure command model
the same as authoritarian socailism; government owns or controls nearly all the factors of production
individuals own the factors of production and answer the basic economic questions
domocratic socialism
the government owns some of the factors of production.
free enterprise
a system under which business can be conducted freely with little government intervention.
private property
goods owner by individuals and by businesses rather than by the government
individuals right to enter into agreements with one another to buy and sell goods and services.
economic rivalry that exists among businesses selling the same or similar products
voluntary exchange
when producers and consumers unconditionally purchase and sell products, and they believe that the opportunity costs of such a trade are acceptable to both parties
product market
all of the exchange of goods and services in the econmy
resource market
the exchange of resources between households
the money paid to households by business firms and the government in exchange for the households' resources
full employment
the lowest possible level of umemployment in the economy
Price stability
achieved when the overall price level of the goods and services available in the economy is relatively constant
standard of living
people's ecomomis well-being