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Related Flashcards
Cards In This Set
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Economic system
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The way a society uses resources to satisty its ppl's wants
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Traditional economy
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An economic system in which ppl produce and distribute goods according to customs handed down from generation to generation
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Command economy
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Economic system in which the gov makes all economic decisions
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Market economy
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An economic system in which individual choice and voluntary exchange direct economic decisions
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Centrally planned economy
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System in which central gov officials make all economic decisions
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Socialism
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Economic system in which the gov owns some or all of the factors of production
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Communism
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Economic system in which the gov owns all the factors of production and there is little or no political freedom
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Authoritarian systems
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Require absolute obedience to those in power
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Private property rights
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Rights of individuals and groups to own business and resources
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Market
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Any place where ppl buy and sell goods and services
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Laissez faire
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Principle that the gov shouldn't interfere in the marketplace
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Capitalism
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Economic system based on private ownership of the factors of production
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Voluntary exchange
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Trade in which both traders believe that what they're getting is worth mroe than what they're giving up
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Profit
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Financial gain that a seller makes fr a business transaction
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Competition
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Involves all the actions sellers, acting independently, do get buyers to purchase their products
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