| A | B |
|---|
| Economic systems | the institutional framework of formal and informal rules that society uses to determine what to produce, how to produce and how to distribute goods and services. |
| Command economy | An economy in which most economic issues of production and distribution are resolved through central planning and control |
| Market economy | An economy that relies on a system of interdependent market prices to allocate goods, services, and productive resources |
| Mixed economy | An economy that exhibits characteristics of more than one type of economic systems. |
| Traditional economy | An economy in which customs and habits from the past are used to resolve most economic issues of production and distribution. |
| Adam Smith | Father of modern economics and wrote An Inquiry in the Nature and Causes of the Wealth of Nations which was published in 1776. |
| Private property | A basic institution in a market economy, provate property involves the right to exclusive use, legal protection against invaders and the right to transfer property to others. |
| Copyright | Legal protection for the authors of literature and music, giving them the sole right to profit from the publication, distribution and the use of their work for a specific period of time. They are also given the right to transfer these rights to other people or entities. |
| Patent | Legal protection for the inventors of ideas, products and processes, giving them the sole right to profit from the production and distribution of their work for a specific period of time. It also gives them the right to transfer these rights to other people or entities. |
| Property rights | Legal protection for the boundaries and possession of property. Assigning property rights to individuals, collectives or governments depends on the economic systems. |
| Distribution | Movement of goods & services through a distribution channel |
| Production | The total output, as of a commodity |
| Resources | Goods or services used to produce valuable consumer products |
| Scarcity | Economic problem that arises because of unlimited wants and limited resources |
| Allocative efficiency | Determining the best way to use resources for maximum benefit |
| Resource allocation | Best way to utilize available assets and resources |
| Social goals | Consumers feel that businesses should help society more |
