Term
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Definition
| an organized way of providing for the wants and needs of their people |
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Definition
| the use of scarce resouces stems from ritual, habit, or custom |
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| when a central authority makes the major decisions about what, how, and for whom to produce |
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Definition
| people make decisions in their own best interest |
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Definition
| an arrangement that allows buyers and sellers to come together to exchange goods and services |
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Definition
| an economic system where private citizens own the factors of production |
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Term
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Definition
| sytems that combine elements of traditional, command, and market economies |
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Term
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Definition
| a mixed economic and political system in which the government owns and controls some, but not all, of the basic productive resources |
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Term
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Definition
| a political and economic sytem where all property is collectively not privatly owned |
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Term
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Definition
| the lowest legal wages that can be paid to most workers |
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Term
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Definition
| a federal program of disability and retirement benefits that covers most working people |
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Definition
| a rise in the general level of prices |
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Term
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Definition
| an income that does not increase even though prices go up |
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Term
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Definition
| resources are privately owned and competition is allowed to flourish with a minimum of government interference |
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Term
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Definition
| the act of buyers and sellers freely and willingly engaging in market transactions |
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Term
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Definition
| allow people to own and control their possessions as they wish |
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Term
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Definition
| the extent to which persons or organizations are better off financially at the end of a specific period than they were at the beginning |
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Term
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Definition
| the incentive that encourages people and organizations to improve their material well being |
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Term
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Definition
| the struggle among sellers to attract consumers |
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Term
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Definition
| recognizes the role of the consumer as sovereign, or ruler of the market |
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Term
| mixed/modified free enterprise economy |
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Definition
| people and businesses cary on their economic affairs freely, but they are subject to some government intervention and regulation |
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Term
| what is an example of a traditional economy? explain it. |
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Definition
| the inuit of northern canada; passed on huntin skills and share their catch so they survived harsh winters |
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Term
| What is the main advantage of a traditional economy? |
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Definition
| everyone knows which role to play |
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Term
| What is the disadvantage of a traditional economy? |
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Definition
| it discourages new ideas and new ways of doing things |
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Term
| Most command economies severly limit____. |
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Definition
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Term
| What are two examples of command economies? |
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Definition
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Term
| What is the main advantage of a command economy? |
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Definition
| it can change direction drastically |
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Term
| What is the main disadvantage of a command economy? |
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Definition
| they ignore the basic wants and needs of the consumers |
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Term
| A market economy is characterized by ____. |
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Definition
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Term
| What is an example of a market economy? |
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Definition
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Term
| What are three advantages to a market economy? |
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Definition
| it is based on freedom, it adjusts gradually to change over time, and there is hardly any government interference |
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Term
| What is a disadvantage of a market economy? |
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Definition
| there is a lot of uncertainty |
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Term
| What is an example of a mixed economy? |
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Definition
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Term
| What is an advantage of a mixed economy? |
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Definition
| it provides assistance for some people who might otherwise be left out |
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Term
| What is a disadvantage of a mixed economy? |
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Definition
| they provide more services, but the costs for these benefits can mean higher costs for citizens overall |
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Term
| What are the seven major economic and social goals of american society? |
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Definition
| economic freedom, economic equity, economic security, full employment, price stability, economic growth |
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Term
| ____is an economic system in which private citizens own and use the factors of production to generate profits. |
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Definition
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Term
| What are the five important characteristics of a capitalistic free enterprise economy? |
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Definition
| economic freedom, voluntary exchange, private property rights, the profit motive, and competition |
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Term
| capitalism thrives on ______. |
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Definition
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Term
| name two well known entreprenuers. |
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Definition
| bill gates and mary kay ash |
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