| A | B |
|---|
| Traditional economy | Amish |
| Command economy | Cuba |
| Market economy | individuals decide what is produced by what they are willing to purchase |
| Democracy | political system in which citizens control the govt. by voting |
| Private property | right of individuals to own land |
| Another name for market economy | capitalism |
| economic freedom | individual decides what to buy, sell and how to use it |
| economic reform | helped Chinese economy grow to be one of the largest in the world |
| 1991 | disintegration of the Soviet Union |
| Social economy | Sweden and France |
| Demand | quantity of a product that a buyer is willing and able to buy at a specific price |
| Supply | quantity supplier is willing to produce and supply at a certain price |
| Law of demand | when prices fall, demand will rise |
| Law of supply | when prices are high, supply will rise |
| Marketing increasing demand | Advertising Christmas toys |
| Women working outside the home | demand for convenience foods |
| Social trends increase demand | Success of MJ in the 1990's |
| Profit motive | drive to earn more profit |
| To increase profits | Decrease expenses |
| Increase productivity | Increase profits |
