Economic Systems Vocabulary PDF

Economic Systems Vocabulary Brodison2023 Study online at https://quizlet.com/_a4uddk 1. Capitalism an economic system in which private individuals own the factors of production 2. Command Econ- economic system characterized by a central authority that makes most of...

Economic Systems Vocabulary Brodison2023 Study online at https://quizlet.com/_a4uddk 1. Capitalism an economic system in which private individuals own the factors of production 2. Command Econ- economic system characterized by a central authority that makes most of the major omy economic decisions 3. Competition the struggle amongst sellers to attract consumers while lowering costs 4. Consumer sover- role of consumer as ruler of the market when determining the types of goods and eignty services produced 5. Economic Effi- a market outcome in which the marginal benefit to consumers of the last unit ciency produced is equal to its marginal cost of production and in which the sum of consumer surplus and producer surplus is at a maximum 6. Economic Equity the attempt to balance an economic policy so that everyone benefits fairly 7. Economic Growth the ability of the economy to increase the production of goods and services 8. Economic model set of assumptions in a table, graph, or equations used to describe or explain economic behavior 9. Economic System organized way a society provides for the wants and needs of its people 10. Factor market a market where productive resources are bought and sold 11. Fixed income income that does not increase even though prices go up 12. Free Enterprise market economy in which privately owned businesses have the freedom to operate System for a profit with limited government intervention 13. Full Employment lowest sustainable unemployment rate thought possible in the economy 14. Inflation rise in the general level of prices 15. Laissez-faire philosophy that government should not interfere with business activity 1/2  Economic Systems Vocabulary Brodison2023 Study online at https://quizlet.com/_a4uddk 16. Market meeting place or mechanism allowing buyers and sellers of an economic product to come together; may be local, regional, national, or global 17. Market economy economic system in which supply, demand, and the price system help people make decisions and allocate resources; same as free enterprise economy 18. Mixed economy free enterprise market economy where people carry on their economic affairs freely, but are subject to some government intervention and regulation 19. Price Stability when the overall level of prices changes slowly or not at all 20. Private Property concept giving people the right to control their possessions as they wish; charac- (Rights) teristic of capitalism and free enterprise 21. Profit Motive the driving force that encourages individuals and organizations to improve their material well-being; characteristic of capitalism and free enterprise 22. Social Security federal program of disability and retirement benefits that covers most working people 23. Standard of Liv- quality of life based on ownership of necessities and luxuries that make life easier. ing 24. Traditional Econ- economic system in which the allocation of scarce resources and other economic omy activity is the result of ritual, habit, or custom 25. Voluntary Ex- the act of buyers and sellers freely and willingly engaging in market transactions; change characteristic of capitalism and free enterprise 2/2