| A | B |
|---|
| economic system | a nation's plan for making decisions on what and how to produce and how to distribute goods and services |
| custom-based economy | an economic system in which goods are produced the way they have always been produced |
| voluntary exchange | buyers and sellers make their own economic decisions to determine what the price will be for goods and services produced and sold |
| marketplace | any place where buyers and sellers exchange goods and services for some form of money |
| competition | the rivalry among businesses in seling to buyers |
| private enterprise | the right of the individual to choose whether to own a business, what business to enter, and what to produce with only limited government direction |
| market economy | an economy in which individuals are free to engage in business transactions with buyers who are able and willing to buy and sellers who supply goods and services from which they earn a profit |
| private property | the right to own, use, or dispose of things of value |
| directed or planned economy | an economy in which individuals are free to engage in business transactions with buyers who are able and willing to buy and sellers who supply goods and services from which they earn a profit |
| profit motive | an economy in which resources are woned and controlled by the government |
| capitalism | an economic system in which most economic resources are provately owned and decisions about production are largely made by free exchange in the market place |
| profit | money left from sales after subtracting the cost of operating the business |
| business | an establishment or enterprise that supplies goods and services in exchange fro some form of payment |
