Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
15 Cards in this Set
- Front
- Back
- 3rd side (hint)
|
A particular set of institutional arrangements and a coordinating mechanism to respond to the economizing problem |
Economic System |
“rules of the game” |
|
|
Households and firms make economic decisions with minimum interference from the government |
Laissez-faire Capitalism |
pure capitalism; French word meaning “let it be” |
|
|
System in which government has total control over all economic activity |
Command System |
government owns property resources and economic decision making set by a central plan enforced by government; a.k. Socialism or Communism |
|
|
In this system, markets and prices coordinate and direct economic activity |
Market System |
also known as mixed economy |
|
|
Property resources (land & capital) owned primarily by private individuals and businesses |
Private Property |
|
|
|
Institution that brings buyers (demanders) & sellers (suppliers) into contact |
Market |
|
|
|
Medium of exchange |
Money |
makes trade easier |
|
|
One or more persons occupying a housing unit |
Household |
|
|
|
Commercial establishments that attempt to earn profit for their owners by offering goods/services for sale |
Businesses |
|
|
|
Business owned and managed by a single person |
Sole Proprietorship |
|
|
|
Two or more individuals agree to own and operate a business together |
Partnership |
natural outgrowth of the sole proprietorship |
|
|
Independent legal entity that can acquire resources, own assets, produce and sell products, incur debt, extend credit, sue & be sued, and engage in any legal business activity |
Corporation |
|
|
|
Place where goods and services produced by businesses are brought and sold |
Product Market |
a type of market |
|
|
Within this market, households sell resources to businesses |
Resource Market |
|
|
|
Tendency of competition to cause individuals and firms to unintentionally promote the interests of society, despite each individual or firm attempting to pursue its own interests |
“Invisible Hand” |
|
