What
The ability to make your own economic decisions
Free Enterprise
In a socialist economy, who makes most of the daily economic decisions?
individual citizens and the government
people and firms act in their own best interests to answer the WHAT, HOW, and FOR WHOM questions. Allows buyers and sellers to come together in order to exchange goods and services.
market economy
economic system in which habit, custom, or ritual dictate most economic and social behavior
traditional economy
the struggle among sellers to attract consumers while lowering costs
competition
an economic system in which a central authority makes economic decisions
Command Economy
The goal of a communist economy is to
create equality within a society
a society's way of organized way of providing for its people's wants and needs
economic system
the act of buyers and sellers freely and willingly engaging in market transactions
most countries in the world have these types of economic systems
a competitive economic system in which the factors of production are owned by private citizens
Capitalism
What is one way a communist (command) economy affects the lives of private citizens?
Citizens cannot make most economic decisions.
the situation in which the money an individual receives does not increase even though prices go up
fixed income
the right and privilege to control one's own possessions
Private Property rights
prices are determined by supple and demand, unlimited choice of careers, individuals and businesses are free to keep profits after paying taxes, competition is encouraged by market forces
Characteristics of capitalism
a form of socialism that abolishes private ownership
the study of how society manages its scarce resources
economics
A general and progressive increase in prices
inflation
The idea that the consumer is the one who decides what goods and services to produce
consumer sovereignty
government owns and operates some basic industries, fairer gap between rich or poor, moving towards a classless society, tax and unemployment are high, price controls by the government
characteristics of socialism
What is one characteristic of a communist economy?
The government controls the prices and production of most goods.
socialist economy is also known as?
mixed economy
the driving force that encourages individuals and organizations to improve their material well-being
profit motive
economic freedom, economic efficiency, economic equity, economic security, full employment, price stability, economic growth
seven major economic and social goals
government owns and operates some basic industries, fairer gap between rich or poor, moving towards a classless society, tax and unemployment are high, price controls by the government
characteristics of communist