economic system
the way in which a nation uses its resources to satisfy its people's wants and needs
traditional economy
economic system in which economic decisions are made based on custom and beliefs handed down from previous generations
command economy
economic system in which the government owns all of the factors of production
market economy
economic system in which individuals and businesses own the factors of production and in which the government has no role
mixed economy
economic system that is a combination of a command economy and a market economy
market
the process of freely exchanging goods between buyers and sellers
capitalism
another name for a market economy
laissez-faire
let people do as they choose"; can be used to describe capitalism
free enterprise system
system in which individuals own the factors of production and decide how to use them
freedom of choice
buyers determine what gets produced by what they choose to buy
profit incentive
the desire to make a profit
competition
the rivalry among producers of similar products to win more customers
private property
property owned by individuals or businesses rather than by the government
socialism
economic system in which the government owns almost all of the factors of production
communism
economic system idealized by Karl Marx in which there is no government
democratic socialism
socialist system in which the leader is elected
authoritarian socialism
socialist system in which the leader takes power by force
economic efficiency
wise use of available resources so as to obtain the greatest benefits possible
standard of living
the material well being of an individual, group, or nation
economic equity
the attempt to balance economic policy so everyone benefits fairly