economic equity
the fairness with which an economy distributes its resources and wealth
economic system
a society's way of coordinating the production and consumption of goods and services
traditional economy
an economic system in which decisions about production and consumption are based on customs and tradition
command economy
an economic system in which economic decisions are left up to individual producers and consumers
market economy
an economic system in which economic decisions are left up to individual producers and consumers
factor payment
Income earned when an individual sells or rents a factor of production that he or she owns.
Wages are factor payments made to workers in exchange for their labor.
mixed economy
An economic system in which both the government and individuals play important roles in production and consumption. Most modern economies are mixed economies.
free enterprise system
An economic system in which the means of production are mostly privately owned and operated for profit.
economic freedom
the ability to make our own economic decisions without interference from the government
economic efficiency
makes the most of society's resources by allocating resources in such a way that the greatest number of consumers get what they want with least amount of waste
full employment
when all who want to work can find jobs
economic growth
when an economy produces more and better goods and services; people want economic growth
economic security
when a society seeks to provide its poorer/weaker members with the support they need in terms of food, shelter, and health care to live decently
economic stability
the goods and services we count on- electricity on demand, food and clothing-are there when we want them; jobs are available, and prices are predictable
free market economy
an economy where no one- no single person, business, or government agency tells producers or consumers what to do. Economic decisions are made voluntarily, by millions of individuals guided by self-interest
circular flow model
When money comes in and goes out; goods are produced and consumed
household
made up of a person or of a group of persons living together
firm
an organization that uses these factors to make and sell goods or services
product market
When goods and services are sold by firms and purchased by households (like a mall)
factor market
When households sell their land, labor and capital to firms (such as renting land, or working for a firm)
industrial revolution
period in the 1800s when new inventions and manufacturing processes spurred the growth of industry, causing a market economy
capitalists
individual investors who grew wealthy by accumulating capital, (machinery, factories, railroads, etc
socialism
a political and economic philosophy that calls for property to be owned by society as a whole, for the benefit of all, instead of by individuals
communism
a political and economic system in which all property and wealth are owned by all members of society, so that class differences disappear, and government is no longer necessary