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Econ Ch. 2
Question | Answer |
---|---|
Traditional Economic System | answers the four basic questions according to tradition, economic decisions are based on customs, beliefs(often religious)-Asia, Middle East, Africa, Latin America |
Command Economic System | the individual has little, if any, influence over how basic questions are answered, gov controls factors of production and makes all decisions about use |
Mixed Economy | contains characteristics of a command and a pure market economy |
Capitalism | economic system in which private individuals own the factors of production and decide how to use them within the limits of the law |
Private Property | what is owned by individuals or groups |
Profit | the money left after all the costs have been paid |
Competition | rivalry among producers or sellers of similar goods to win more business by offering the lowest prices or better quality |
Economic Growth | expansion of the economy to produce more goods, jobs, and wealth |
Equity | amount of money invested in a property minus the debt, such as the mortgage payments that are still owed |
Standard of living | material well-being of a person or group, or nation measured by average value of goods and services used by citizens during a certain period of time |