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| A set of institutional arrangements and a coordinating mechanism for solving the economizing problem; a method of organizing an economy, of which the market system and the command system are two general types |
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| A method of organiziing an economy in which property resources are publically owned and government uses central economic planning to direct and coordinate economic activities; command economy; communism |
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| All the product and resource markets of a market economy and the relationships among them; a method that allows the prices determined in those markets to allocate the economy's scarce resources and to communicate and coordinate the decisions made by consumers, firms, and resource suppliers |
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| The right of private persons and firms to obtain, own, control, employ, dispose of, and bequeath land, capital, and other property |
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| Freedom of firms to obtain economic resources, to use those resources to produce products of the firm's own choosing, and to sell their products in markets of their choice |
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| The freedom of owners of property resources to employ or dispose of them as they see fit, of workers to enter any line of work for which they are qualified, and of consumers to spend their incomes in a manner that they think is appropriate |
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| That which each firm, property owner, worker and consumer believes is best for itself and seeks to obtain. |
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| The presence in a market of independent buyers and sellers competing with one another along with the freedom of buyers and sellers to enter and leave the market |
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| Any institution or mechanism that brings buyers and sellers into contact. |
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| The use of resources of an organization to concentrate production on one or a small number of goods and services |
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| The separation of the work required to produce a product into a number of different tasks that are performed by different workers; specialization of workers |
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| Any item sellers generally accept and buyers generally use to pay for a good or service; money; a convenient means of exchaning goods and services without engaging in barter |
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| Swapping goods or services for goods or services |
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| Any item that is generally acceptable to sellers in exchange for goods and services |
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| Determination by consumers of the types and quantities of goods and services that will be produced with the scarce resources of the economy; consumers' direction of production through their dollar votes |
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| A consumers "vote" placed by the purchase of a good or service. |
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| The creation of new products and production menthods destroys the market position of firms that are connected to existing products and older ways of doing business. |
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| The tendency of firms and resource suppliers that seek to further thteir own self-interests in competitive markets to also promote the interest of society |
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| An illustration showing the flow of resources from households to firms and of products from firms to households. These flows are accompanied by reverse flows of money from firms to households and from households to firms. |
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Definition
| A market in which households sell and firms buy resources or the services of resources |
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Term
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Definition
| A market in which products are sold by firms and bought by households. |
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