Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
22 Cards in this Set
- Front
- Back
|
Traditional Economy
|
an economy based on a society's values and customs and traditions.
|
|
|
command Economy
|
relies on governmnt officals to answer economic questions
|
|
|
Market Economy
|
individuals answer the 3 basic econimic questions
|
|
|
market
|
the free exchange of goods and services
|
|
|
self-interests
|
the impulse that encourages people to fulfill their needs and wants
|
|
|
incentives
|
something that encourages you to behave in a particular way
|
|
|
mixed economy
|
combines elements of traditional, market, and command economic models to answer the three basic economic questions
|
|
|
authoritarian socialism
|
mixed economies that are closest to the pure command model
|
|
|
communism
|
the same as authoritarian socailism; government owns or controls nearly all the factors of production
|
|
|
capitalism
|
individuals own the factors of production and answer the basic economic questions
|
|
|
domocratic socialism
|
the government owns some of the factors of production.
|
|
|
free enterprise
|
a system under which business can be conducted freely with little government intervention.
|
|
|
private property
|
goods owner by individuals and by businesses rather than by the government
|
|
|
contracts
|
individuals right to enter into agreements with one another to buy and sell goods and services.
|
|
|
competition
|
economic rivalry that exists among businesses selling the same or similar products
|
|
|
voluntary exchange
|
when producers and consumers unconditionally purchase and sell products, and they believe that the opportunity costs of such a trade are acceptable to both parties
|
|
|
product market
|
all of the exchange of goods and services in the econmy
|
|
|
resource market
|
the exchange of resources between households
|
|
|
income
|
the money paid to households by business firms and the government in exchange for the households' resources
|
|
|
full employment
|
the lowest possible level of umemployment in the economy
|
|
|
Price stability
|
achieved when the overall price level of the goods and services available in the economy is relatively constant
|
|
|
standard of living
|
people's ecomomis well-being
|
