| A | B |
|---|
| capitalism | economic system providing free choice and individuals incentives |
| coalition government | gov't formed by several parties who combine forces to form a majority |
| command economy | economic system where the gov't controls the factors of production |
| constitutional monarch | king that shares powers with an elected legislature |
| developing nation | country beginning to develop industrially |
| factors of production | resources that an economy needs to produce goods & services |
| gross national product | sum of all goods and services produced in a nation in 1 year |
| laissez-faire | philosophy that gov't keep its hands off the economy |
| market economy | economic system in which the factors of production are owned by individuals |
| mixed economy | system in which the gov't regulates private business |
| nationalization | process by which the gov't takes control of an industry |
| parliamentary democracy | form of gov't; both the executive and legislative powers belong to the elected legislature |
| prime minister | leader of the executive branch in a parliamentary gov't |
| unitary system | gov't that gives all key powers to the central gov't |
| Adam Smith | economist; created capitalism |
| Karl Marx | philosopher who invented communism |
| socialism | economic system; gov't owns the basic means of production |
| communism | economic system; central gov't makes all economic decisions |
