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Economic Systems
Vocab
Question | Answer |
---|---|
an economy in which production is based on customs and tradition | Traditional economy |
where a central government authority makes all basic decisions | Command economy |
where the government has little say in what how and for whom goods are made for | Market economy |
free exchange of goods and services | Market |
the impulse that encourages people to fulfill their needs and wants | Self-interest |
something that encourages an action or effort | Incentive |
economy that combines elements of the traditional command and market | Mixed economy |
system where government controls most factors of production (Communism) | Authoritarian socialism |
economic system where government controls nearly all factors of production | Communism |
a market-based economic system where individuals control factors of production | Capitalism |
system where the producing distributing of goods is controlled by government | Democratic socialism |
system where private businesses operate with minimal government involvement | Free enterprise |
property that is owned by individuals and businesses not government | Private property |
legal binding agreement oral or written between individuals | Contracts |
a state of rivalry among sellers of the same or similar products | Competition |
unconditional and beneficial transfer of goods between producer and consumer | Voluntary exchange |
market in which producers offer final goods and services | Product market |
market in which households exchange resources with businesses and the government | Resource market |
money payments households receive funds businesses take in | Income |
lowest possible level of unemployment in an economy | Full employment |
the condition that exists when price levels remain relatively constant over time | Price stability |
peoples economic well being determined by the goods services used over time | Standard of living |