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| Way in which a nation uses its resources to satisfy its people's needs and wants. |
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| traditional economic system |
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| Economic system where decisions are based on custom, beliefs (often religions), and tradition passed on from generation to generation. |
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| economic system where the individual has little, if any, influence over how the basic economic questions are answered. The government has almost all say on economy (think of communism) |
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Economic system in which the government does not intervene. Individuals own the facotros of production, and they decide for themselves the answers to the four basic economic questions. |
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| The freely chosen activitiy between buyers and sellers of goods and services. |
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| convergience of a command economy and a market economy. almost balance economic system where both gov't and individuals have say in answering the questions of economy. |
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| distribution of goods and services among all members of an economic system. |
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| term used by Adam Smith to describe the effect of competition in guiding individuals toward working for their own self-interest therefor achieving the maximum good for society. |
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| economic system in which private individuals own the factors of production and decide how to use them within the limits of the law |
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| system in which individuals own the factors of production and decide how to use them within legal limits. Also called capitalism |
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| whatever is owned by individuals or groups rather than the federal, state, or local governments. |
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| The money left after all the costs of production have been paid. |
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| desire to make money that motivates people to produce and sell goods and services that others want to buy. |
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| Rivalry between producers sellers of similar goods to win more business by offering the lowest prices or better quality. |
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