| A | B |
|---|
| economic system | way in which a nation uses its resources to satisfy its people's needs and wants |
| traditional economy | system in which economic decisions are based on customs and beliefs that have been handed down from generation to genereation |
| command economy | system in which the government controls the fators of production and makes all decisions about their use |
| market economy | system in which individuals own the factors of production and make economic decisions through free market interaction while looking out for their own best interests |
| market | freely chosen activity between buyers and sellers of goods and services |
| circular flow of ecnomic activity | economic model that pictures iincome flowing continuously between businesses and consumers |
| mixed economy | system combining characteristics of more than one type of economy |
| income | compensation received from providing a good or service |
