| A | B |
|---|
| economic system | method used by a society to produce and distribute goods and services |
| factor payments | the income people receive for supplying factors of production, such as land, labor, or capital |
| patriotism | the love of one's country |
| safety net | government programs that protect people experiencing unfavorable economic conditions |
| standard of living | level of economic prosperity |
| traditional economy | economic system that relies on habit, custom, or ritual to decide questions of production and consumption of goods and services |
| market economy | economic system where decisions are made by individuals and are based on exchange or trade |
| centrally planned economy | the central government alone decides how to answer all 3 economic questions |
| mixed economy | economic system that combines tradition and the free market with limited gov't involvement |
| command economy | economic systems in which the central authority is in command of the economy |
| laissez faire | government should generally not interfere in the marketplace |
| private property | property owned by individuals or companies, not owned by the government or the people as a whole |
| free enterprise | an economic system characterized by private or corporate ownership of capital goods |
| continuum | a range with no clear division |
| privatize | to sell state-run firms to individuals |
| transition | period of change in which an economy moves away from a centrally planned economy toward a market-based system |
