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Related Flashcards
Cards In This Set
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Economy / Economic System
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An organized way of providing for the wants and needs of their people.
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Traditional Economy
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The allocation of scarce resources, and nearly all other economic activity, stems from ritual, habit, or custom.
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Command Economy
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One in which a central authority makes most of the WHAT, HOW, and FOR WHOM decisions
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Market Economy
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People and firms act in their own best intersts to answer the WHAT, HOW, and FOR WHOM questions.
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Social Security
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A federal program of disablity and retirement benefits that covers most working people.
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Inflation
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A rise in the general level of prices
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Fixed Income
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An income that does not increase even though prices go up
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Capitalism
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Where private citizens, factors of production
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Free Enterprise
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Another term used to describe the American economy
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Voluntary Exchange
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The act of buyers and sellers freely and willingly engaging in market transactions.
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Private Property Rights
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The privilege that entitles people to own and control their possessions as they wish.
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Profit
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Is the extent to which persons or organizations are better off at the end of a period than they were at the beginning
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Profit Motive
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The driving force that encourages people and organizations to improve their material well-being-is largely respondible for the growth of a free enterprise system based on capitalism.
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Competition
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The struggle among sellers to attract consumers while lowering costs.
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Consumer Sovereignty
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Describes the role of the consumer as sovereign, or ruler, of the market.
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