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16 Cards in this Set
- Front
- Back
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economic system
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an organized way of providing the wants and needs to a countries people
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traditional economy
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economic activity that stems from ritual , habit or custom . individuals cant make decisions on what they want or what they do . everyone has a role . (eskimos)
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command economy
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a central authority makes most of the production decisions. like the gov. people have little say . can change production drasticly in a period of time.
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Market economy
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people and firms act in their own best interest. consumers play the key role . in order for one to succeed there must be competition , freedom of resources and consumer data.
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social security
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a federal program of disability and retirment benefits that cover most working people
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inflation
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a rise in the general level of prices
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fixed income
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an income that does not change even if prices do .
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american economic goals
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freedom
efficienty equity security full employment stability growth |
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capitalism
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where private citizens own the factors of production
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free enterprise
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a term used to describe the american economy (limited gov influence)
has 5 main parts : economic freedom , voluntary exchange, private property rights , profit motive competition . |
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economic freedom
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to be able and choose an occupation and employer , where and when to work and producers can rpoduce how they want.
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voluntary exchange
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the act of buyers and sellers to freely and willingly engage in market transactions. both end up better off somehow.
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private property rights
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the priviladge that entitles people to improve their material will being. largely responsible for the growth of a free enterprise system based on capitalism.
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competition
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the struggle among sellers to attract consumers while lowering costs and adding value to their products
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consumer sovereignty
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consumers rule the market
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mixed economy / modified private enterprise economy
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people carry out their economic affairs freely but are subject to some economic intervention by the gov. this system changes with societies progression.
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