| A | B |
|---|
| government | who determines what is produced in a command economy |
| consumers | buyers of good and services |
| profit | the money left over after all debts are paid |
| competition | businesses trying to be the best; characteristic of free market |
| mixed economy | where government makes decisions for the public sector |
| central ownership | the government owns property and resources |
| centrally planned economy | the government decides what will be produced and how |
| free market | capitalist economy |
| lack of consumer choice | where buyers do not have many options |
| consumer sovereignty | where buyers decide what will be produced |
| incentives | where producers hope to change consumer behavior; a sale, for example |
| opportunity cost | what is given up when a choice is made on how to spend resources |
| China, North Korea | examples of Command Economies |
| United States | example of free market/capitalist economy |
