| Term | Definition |
|---|
| economy | organized way a soceity provides for the wants and needs of its people |
| traditional economy | the all ocation of scarce resources and nearly all other econmic activity stems from ritual, habit,or custom |
| command economy | one in which a central authority makes most of the what, how, and whom desisions |
| market economy | people with and firms act in their own best inters to answer the what, how, and whom questions. |
| social security | a federal program of disabilty and retirement benefits that cover most working people |
| inflation | a rise in general level of prices, occurs, workers need more money to play for food, clothing, and shelter |
| fixed income | an income that does not increase even through prices go up find that bills are harder to pay and that planning for the future is more diffcult |
| capitalism | a system in which private citzens own the factors of production |
| voluntary exchange | the act of buyers and sellers freely and willingly engaging in market transactions |
| private property | the concept that people have the right and preiviledge to control their possessions as they wish |
| profit | is the extentto which persons or organizations are better off at the end of a period than they were at the beginning |
| profitication | the drivinf force that encourages people and organizations to improve their material well being |
| sumer soverignty | describes the role of the consumer as sovereign, or ruler of the market |
| mixed economy/ modified private | one in which people carry on their economic affairs freely but are subject to some goverment intervention and regulations |
Combine with other sets
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