| A | B |
|---|
| Economic System | A way of producing goods and services and of providing a means for people to get them |
| Traditional System | An economic system in which people do things the way they have always done them |
| Command System | The basic economic questions of what and how to produce and distribute are made by a central authority |
| Strong Command System | One advantage of this system is that it can make a dramatic change in a short time |
| Moderate Command System | A major disadvantage of this system is that the high rate of taxation discourages private business and lessens spendable income for individuals |
| Market System | The basic economic decisions are based on the actions of people and business firms participating in many different markets |
| Price | The amount of money given or asked for when goods or services are bought or sold |
| Mixed systems | Modern economies have some element of all three influences in them |
| Standard of living | A measure of how well the people in an economic system live |
