| A | B |
|---|
| Economic System | The method used by a society to produce and distribute goods and services. |
| Traditional System | Economic system that relies on habit, custom, or ritual to decide guestions of production and consmption of goods and services. |
| Market System | Economic system in which decisions on production and consumption of goods and services are based on voluntary exchange in markets. |
| Centrally Planned System | economic system in which the central government makes all decisions on the production and consumption of goods and services. |
| Mixed Economy | economic system that combines tradition and the free market with limited government involvement. |
| Command System | Same as Centrally Planned Economy |
| Market System | Capitalism, Free Enterprise systems |
| Means of Production | factories, farms, shops, office buildings, mines, machinery. Used to produce other goods and services |
| First Economic Question | What goods and services should be produced? |
| Second Economic Question | How should the goods and services be produced? |
| Third Economic Question | Who will receive the goods and services that are produced? |
| Fourth Economic Question | Who owns the means of production in economic systems? |
