| A | B |
|---|
| Economic System | a nations' plan for answering the key economic questions |
| Custom-Based Economy | An economic system in which goods are produced the way they have always been produced |
| Directed or Planned Economy | An economic system in which resources are owned and controlled by the government |
| Market Economy | An economy in which individuals are free to engage in business transactions with buyers who are willing an able to buy and sellers who supply goods and services from which they earn a profit |
| Marketplace | Any place where buyers and sellers exchange goods, services, and some form of money |
| Capitalism | An economic system in which most economic resources are privately owned and decisions are largely made by free exchange in the marketplace. This is the system used the U S. |
| Free or Private Enterprise System | Same idea as capitalism where most economic resources are privately owned and decisions about production and distribution are largely made by voluntary exchange in the marketplace |
| Voluntary Exchange | Buyers and sellers make their own economic decisions to determine what the price will be for goods and services produced and sold |
| Business | an establishment or enterprise that supplies goods and services in exchange for payment in some form |
| Private Enterprise | The right of the individual to choose whether to own a business, what business to enter, and what to produce with only limited government direction |
| Private Property | The right to own, use or dispose of things of value |
| Profit | The money left from sales after subtracting all the costs of operating the business |
| Profit Motive | The desire to work hard and be creative to earn a higher profit |
| Competition | The rivalry among businesses to sell their goods and services to buyers |
