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Ch 5 Econ Review
| Term | Definition |
|---|---|
| command economy | system in which decisions are made by the central government |
| economics | examines how societies use resources to produce and distribute goods and services |
| macroeconomics | examines economic decisions made by governments rather than individuals |
| microeconomics | economic decisions are based on individual self interest |
| mixed economy | a combination of a command and market economic systems |
| market economy | an economic system in which decisions about what to produce, how and for whom are decided by individuals acting in their own self interest |
| free enterprise | an economic system where individuals are free to own and control a business |
| traditional economy | economic system in which decisions about what to produce, how, and for whom are based on traditional customs and beliefs |