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5.02
vocabulary
| Term | Definition |
|---|---|
| Economic system | organized way in which a country handles its economic decisions and solves its economic problems |
| Traditional economic system | produce only what they must have in order to exist; all economic decisions are based on habit and traditions |
| Command economic system | production and distribution are owned and controlled by the government |
| Communism | controls and does not allow private ownership of the means of production and distribution |
| Socialism | basic means of production and allows private ownership of businesses |
| Market economic system | determined supply, demand and prices of goods and services, that are determined in a free price system |
| Private enterpise | the means of production the human, natural resources and capital goods used to produce goods and serivices |