Economic Systems

mixed economy

combines elements of the command and market economies

entrepreneurial resources

the initiative to combine natural human, and capital resources

opportunity cost

value of the next-best alternative that is forgone to produce or obtain another product

competitors

businesses that offer the same goods to the same customers

producers

individuals and organizations that determine which goods and services will be available for consumption

economic decision-making

process of choosing which needs or wants will be satisfied

economic resources

means from which goods and services are produced

private property

right to purchase, use, and discard of things of value

services

activities that can be consumed at the time of purchase to satisfy needs and wants

scarcity

condition that exists when needs and wants exceed resources available

economics

study of the decisions made production, distribution, and consumption of goods and services to satisfy needs and wants

needs

necessities required for living

consumer

buys and uses the goods and services

capital resources

goods and money used in the production of goods and services

natural resources

raw materials supplied by nature

human resources

people using efforts, knowledge, and skills at work to produce goods and services

free enterprise

economic system which freedom to consume and produce goods and services exists

traditional economy

economic system in which decisions are based on customs and centered on family

goods

items purchased to satisfy needs and wants

profit

money left after selling goods and services and costs of operating a business have been paid

wants

goods that are purchased to add comfort or pleasure to life

marketplace

anywhere goods and services exchange hands

tradeoff

process of giving up something for gaining something else

market economy

goods and services are owned and controlled by the people

freedom of choice

opportunity to make choices of goods and services and accept consequences of decisions

command economy

economics systeem in which the government owns resources and dictates what is produced

market price

the point where supply and demand are equal

mixed economy

combines elements of the command and market economies

entrepreneurial resources

the initiative to combine natural human, and capital resources

opportunity cost

value of the next-best alternative that is forgone to produce or obtain another product

competitors

businesses that offer the same goods to the same customers

producers

individuals and organizations that determine which goods and services will be available for consumption

economic decision-making

process of choosing which needs or wants will be satisfied

economic resources

means from which goods and services are produced

private property

right to purchase, use, and discard of things of value

services

activities that can be consumed at the time of purchase to satisfy needs and wants

scarcity

condition that exists when needs and wants exceed resources available

economics

study of the decisions made production, distribution, and consumption of goods and services to satisfy needs and wants

needs

necessities required for living

consumer

buys and uses the goods and services

capital resources

goods and money used in the production of goods and services

natural resources

raw materials supplied by nature

human resources

people using efforts, knowledge, and skills at work to produce goods and services

free enterprise

economic system which freedom to consume and produce goods and services exists

traditional economy

economic system in which decisions are based on customs and centered on family

goods

items purchased to satisfy needs and wants

profit

money left after selling goods and services and costs of operating a business have been paid

wants

goods that are purchased to add comfort or pleasure to life

marketplace

anywhere goods and services exchange hands

tradeoff

process of giving up something for gaining something else

market economy

goods and services are owned and controlled by the people

freedom of choice

opportunity to make choices of goods and services and accept consequences of decisions

command economy

economics systeem in which the government owns resources and dictates what is produced

market price

the point where supply and demand are equal