Studied by 3 people
Economic system in which private citizens own and use the factors of production in order to generate profits
capitalism
Free enterprise economy where people carry on their economic affairs freely, but are subject to some government intervention and regulation
modified private enterprise economy
Rise in the general level of prices
inflation
Organized way a society provides for the wants and needs of its people
economic system
Economic system in which supply, demand, and the price system help people make decisions and allocate resources
market-economic
Extent of which people or organizations are better off at the end of the period than they were at the beginning
profit
Income that does not increase even though prices go up
fixed income
Economy in which competition is allowed to flourish with a minimum of government interference
free enterprise economy
Role of consumer as a ruler of the market when determining the types of goods and services produced
consumer sovereignty
Federal program of disability and retirement benefits that covers most working people
social security
The struggle among sellers to attract consumers while lowering costs
competition
Fundamental feature of capitalism, which allows individuals to own and control their possessions as they wish
private property rights
Act of buyers and sellers freely and willingly engaging in market transactions
voluntary exchange
Driving force that encourages people and organizations to improve their well being
profit motive
The right of government to take private property at a fair price, for public purpose
eminent domain
list the 3 types of economic systems
traditional, command, market-economic
economic system in which the allocation of resources and other economic activity is the result of ritual, habit, or custom
traditional
economic system characterized by a central authority that makes most of the major economic decisions
command
list one advantage of a traditional economy
little uncertainty
list one disadvantage of a traditional economy
discourages new ideas
list one advantages of a command economy
little uncertainty
list one disadvantage of a command economy
doesn't meet the wants of consumers
list one advantage of a market economy
can adjust to change
list one disadvantage of a market economy
doesn't provide for the basic needs of everyone in society
because societies face scarcity, decisions concerning _, __ and for ______________ to produce must be made
what, how, whom
T OR F? the US is a pure market economy
false
T OR F? a mixed economy is not an economic system
true
list what country is a traditional economy
yemen
list what country is a command economy
cuba
list what country is a market-economic economy
ireland
list our nation's 7 economic goals
economic freedom, economic efficiency, economic equity, economic security, full employment, price stability, economic growth
list 3 alternative names for the US economy
capitalism, private enterprise, free enterprise
list the characteristics of a free enterprise
economic freedom, profit motive, voluntary exchange, private property, competition
list the advantages of competition
lower prices, good quality, newer products, improved services
list the roles of the government
protector, provider & a consumer, regulator, promoter of national goals
give an example of voluntary exchange
buying bananas at kroger
