| A | B |
|---|
| economic system | organized way a society provides for the wants and needs of its people |
| traditional economy | economic sustem in which the allocation of scarce resources and other economic activity is the result of ritual, habit, or custom |
| command economy | economic system characterized by a central authority that makes most of the major ecnomic decisions |
| market economy | economic system in which supply, demand, and the price system helps people make decisions and allocate resources |
| social security | federal program of disability and retirement benefits that covers most working people |
| economic freedom | freedom to choose occupation and employer |
| economic efficiency | using resources and services wisely |
| economic equity | laws protecting against false advertising and descrimination |
| economic security | protection from such adverse economic events as layoffs and illness |
| economic growth | the growth of economy so people can have better jobs |
| full employment | lowest sustainable unemployment rate thought possible in the economy |
| price stability | not having inflation; prices remain constant |
| inflation | the general increase of prices |
| fixed income | income that doesn't increase even though prices go up |
| capitalism | market economy in which the factors of production are privately owned |
| voluntary exchange | act of buyers/sellers freely and willingly engaging in market transactions;characteristics of capitalism/free enterprise |
| private property | concept giving people the right to control their possesions as they wish |
| profit | extent to which persons or organizations are better off at the end of a period than the beginning |
| profit motive | driving force that encourages people to work |
| consumer sovreignty | roel of consumer as ruler of market to decide what stays on the market |
| mixed economy | free enterprise with some government intervention |
