| A | B |
|---|
| capitalism | economic system in which private individuals own the factors of production |
| laissez-faire | economic system in which the government minimizes its interference with the economy |
| free enterpiise system | economic system in which individuals own the means of production and decide how to use them withn legal limits; same as capitalism |
| profit | money left after all the costs of production -- wages, rents, interest, and taxes -- have been paid |
| profit incentive | desire to make money that motivates people to produce and sell goods and services |
| private property | whatever is owned by individuals rather than by government |
| competition | rivalry among producers or sellers of similar goods and services to win more business |
| expense | the cost of doing business |
| economic efficiency | wise use of available resources so that costs don't exceed benefits |
| economic equity | the attempt to balance an economic policy so that everyone benefits fairly |
| standard of living | the material well-being of individuals |
| economic growth | expansion of the economy to produce more goods, jobs, and wealth |
