econ chapter 2

Economic system in which private citizens own and use the factors of production in order to generate profits

Free enterprise economy where people carry on their economic affairs freely, but are subject to some government intervention and regulation

Rise in the general level of prices

Organized way a society provides for the wants and needs of its people

Economic system in which supply, demand, and the price system help people make decisions and allocate resources

Extent of which people or organizations are better off at the end of the period than they were at the beginning

Income that does not increase even though prices go up

Economy in which competition is allowed to flourish with a minimum of government interference

Role of consumer as a ruler of the market when determining the types of goods and services produced

Federal program of disability and retirement benefits that covers most working people

The struggle among sellers to attract consumers while lowering costs

Fundamental feature of capitalism, which allows individuals to own and control their possessions as they wish

Act of buyers and sellers freely and willingly engaging in market transactions

Driving force that encourages people and organizations to improve their well being

The right of government to take private property at a fair price, for public purpose

list the 3 types of economic systems

economic system in which the allocation of resources and other economic activity is the result of ritual, habit, or custom

economic system characterized by a central authority that makes most of the major economic decisions

list one advantage of a traditional economy

list one disadvantage of a traditional economy

list one advantages of a command economy

list one disadvantage of a command economy

list one advantage of a market economy

list one disadvantage of a market economy

because societies face scarcity, decisions concerning _, __ and for ______________ to produce must be made

T OR F? the US is a pure market economy

T OR F? a mixed economy is not an economic system

list what country is a traditional economy

list what country is a command economy

list what country is a market-economic economy

list our nation's 7 economic goals

list 3 alternative names for the US economy

list the characteristics of a free enterprise

list the advantages of competition

list the roles of the government

give an example of voluntary exchange