| A | B |
|---|
| economic system | the method used by a society to produce and distribute goods and services |
| factor payments | market income people receive for supplying factors of producation: 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 in which decisions on production and consumption of goods and services are based on voluntary exchange in markets |
| centrally planned economy | economic system in which the central government makes all the decisions on the production and consumption of goods and services |
| command economy | 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 the free market with limited government involvement. |
