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Economic Systems
Term | Definition |
---|---|
Capital | Man made things used to make something else. |
Command Economy | All values based on doing what is best for society in cooperation, but under the leadership of the government decisions. |
Efficiency | Not wasting scarce resources |
Equity | Equal distribution of resources |
Freedom | Ability to buy/sell what you want or change jobs. |
Growth | Increasing the total output of goods in a society and leading to a rise in GDP |
Labor | Using your skills and abilities to earn an income |
Land | Natural resources or “gifts from nature” |
Market Economy | Values based on the individuals of a society. |
Opportunity Cost | The value of your next best alternative – what you did not choose |
Security | Protect individuals from unemployment and economic crashes |
Scarcity | Unlimited wants and limited resources |
Stability | General overall level of prices remain fairly stable |
Traditional Economy | All values are based on custom |