| Term | Definition |
|---|
| safety net | government programs that protect people experiencing unfavorable economic conditions |
| traditional economy | economic system that relies on habit, custom, or ritual to decide questions of production and comsumption of goods and services |
| market economy | economic system in which decisions on production and consumption of goods and services are based on voluntary exchange in markets |
| centrally planned economy | economic system in which the central government makes all decision on the production and consumption of goods and services |
| command economy | economic system in which a central authority is in command of the economy; a centrally planned economy |
| mixed economy | market-based economic system with limited government involvement |
| market | an arrangement that allows buys and sellers to exchange things |
| specialization | concentration of the productive efforts of individuals and firms on a limited number of activities |
| incentive | an expectation that encourages people to behave in a certain way |
| competition | the struggle among producers for the dollars of consumers |
| laissez faire | doctrine that states that government generally should not intervene in the marketplace |
| private property | owned by individuals or companies, not by the government or the people as a whole |
Combine with other sets
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