 | Term | Definition |
| |
Economic System |
The way in which society decides how to use its resources to produce and distribute goods and services. |
| |
Tradition-based Economic System |
Economic decisions are based largely on custom in a t-b economic system |
| |
Comand Economic System |
A central agency--usually the government- owns and controls will produce |
| |
Market Economic System |
Individual people and businesses decide what,how, and how much they will produce and how the products will be distibuted |
| |
Capitalism |
Economic system in which individuals, or capitalists, own and control the factors of production |
| |
Mixed Econonmic System |
Its one that has some features from tradition, command, and market economic systems. |
| |
Market |
The actions of buying and selling. |
| |
Buyers |
People who buy products are called consumers |
| |
Sellers |
People who sell products are called producers |
| |
Producers |
People who create goods and services. |
| |
Consumers |
Individuals are people who buy goods and services to satisfy their wants and needs. |
| |
Resource Market |
Producers pay individuals for productive resources that they need to make products |
| |
Economic Freedom |
Allows individuals to make economic decisions that they believe are in their own best interest |
| |
Price |
is the amount of money asked or paid for something |
| |
Profit Motive |
The search for the greatest profit |
| |
Private Property |
Property owned by individuals and bussinesses, rather than by the government |
| |
Competition |
Exists when producers or sellers sell similar products |
| |
Voluntary Exchange |
People trade freely with one another |
| |
Product Market |
Consumers pay money to producers for products |
