Terms in this set (18)
the structure of methods and principles that a society uses to produce and distribute goods and services
government programs that protect people experiencing unfavorable economic conditions
Standard of Living
Quality of life based on ownership of necessities and luxuries that make life easier.
An economy in which production is based on customs and traditions and economic roles are typically passed down from one generation to the next.
economic system in which decisions on production and consumption of goods and services are based on voluntary exchange in markets
an economy in which production, investment, prices, and incomes are determined centrally by a government.
An economy in which private enterprise exists in combination with a considerable amount of government regulation and promotion.
a group of buyers and sellers of a good or service and the institution or arrangement by which they come together to trade
an organization that uses resources to produce a product, which it then sells
A financial gain, esp. the difference between the amount earned and the amount spent in buying, operating, or producing something
That which each firm, property owner, worker, and consumer believes is best for itself and seeks to obtain.
a positive or negative environmental stimulus that motivates behavior
the struggle among producers for the dollars of consumers
A phrase coined by Adam Smith to describe the process that turns self-directed gain into social and economic benefits for all
the situation in an economy where the desires and needs of consumers control the output of producers.
Policy that government should interfere as little as possible in the nation's economy.
Economic system in which individuals and businesses are allowed to compete for profit with a minimum of government interference
To change from government or public ownership or control to private ownership or control.