-
economic system
way in which a nation uses its resources to satisfy its people's needs and wants
-
traditional economy
system in which economic decisions are based on customs and beliefs that have been handed down from generation to generation
-
command economy
system in which the government controls the factors of production and makes all decisions about their use
-
market economy
system in which individuals own the factors of production and make economic decisions through free interaction while looking out for their own and their families' best interests
-
market
freely chosen activity between buyers and sellers of goods and services
-
circular flow of economic activity
economic model that pictures income as flowing continuously between businesses and consumers
-
mixed economy
system combining characteristics of more than one type of economy
-
capitalism
economic system in which private individuals own the factors of production
-
laissez-faire
economic system in which the government minimizes its interference with the economy
-
free enterprise system
economic system in which individuals own the factors of production and decide how to use them within legal limits; same as capitalism
-
profit
money left after all the costs of production--wages, rents, interest, and taxes--have been paid
-
profit incentive
desire to make money that motivates people to produce and sell goods and services
-
private incentive
whatever is owned by individuals rather than by government
-
competition
rivalry among producers or sellers of similar goods and services to win more business
-
economic efficiency
wise use of available resources so that costs do not exceed benefits
-
economic equity
the attempt to balance an economic policy so that everyone benefits fairly
-
standard of living
the material well-being of an individual, group, or nation measured by how well their necessities and luxuries are satisfied
-
economic growth
expansion of the economy to produce more goods, jobs, and wealth
|
|
