| A | B |
|---|
| economic systems | ORGANIZED way of providing for the needs and wants of the people. |
| traditional economy | economic system where scarce resources and other economic activites are based on ritual, habit, or custom |
| command economy | a central authority(ie. king, dictator, president, etc.) makes the major economic decisions |
| market economy | people make decisions in their own best interest |
| market | an arrangement that allows buyers and sellers to come togther to exchange goods and services (in a physical location or Internet site) |
| capitalism | an economic system where PRIVATE citizens OWN the factors of production |
| mixed economy | systems that combine elements of all 3.. traditional, command, and market economies |
| socialism | - a mixed economy and political system in which the gov’t owns and controls some, but NOT ALL, of the basic production resources |
| communism | - all factors of production are COLLECTIVELY OWNED and controlled by THE STATE |
| stagnation | lack of movement |
| allocate | to assign |
| emphasizing | stress |
