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
Economy in which competition is allowed to flourish with a minimum of government interference
free enterprise economy
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 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
an economy that combines the element of the traditional, command and market economies
mixed economy