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19 Cards in this Set
- Front
- Back
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Traditional economy
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based on a society's values- its customs and traditions
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Command economy
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relies on government officials to answer the three basic economic questions
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market economy
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individuals answer the three basic questions.... The government has no say
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market
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free exchange for goods and services
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self-interest
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the impulse that encourages people to fulfill their needs and wants
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incentive
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something that encourages you to behave in a particular way
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mixed economy
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combines elements of traditional, market and command economic models to answer the three basic questions
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authoritarian socialism
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also known as communism.
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communism
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in these economies the government owns or controls nearly all the factors of production
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capitalism
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individuals own the factors of production and answer the basic economic questions EX: U.S., Canada, Mexico, Japan
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democratic socialism
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the government owns some of the factors of production
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free enterprise
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a system under which business can be conducted freely with little government intervention
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private property
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goods that are owned by individuals and by businesses rather than by the government
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contracts
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individuals have the right to enter into agreements with one another to buy and sell goods
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competition
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economic rivalry that exists among businesses
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voluntary exchange
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belief that the opportunity cost of such a trade are acceptable to both parties
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product market
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represents all of the exchanges of goods and services in the economy
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resource market
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represents the exchange of resources between households
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income
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money paid to households by business firms
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