| A | B |
|---|
| Command Economy | An economy controlled by the government. The government owns the means of production, which includes everything people use to produce wealth, such as machines tools, buildings, and land. |
| Traditional Economy | An economy based off traditions and customs within a certain place. Usually found in poor, rural countries |
| Market Economy | An economic system that is controlled not by the government but by privately owned businesses. It is also called capitalism or sometimes a free-market system. |
| Mixed Economy | Economies that have features of both a market economy and a command economy; almost all economies today are mixed, including the US. |
| Specialization | When a country focuses on producing only products that it can produce efficiently. |
| Trade | When countries buy and sell goods and services from one another; it is beneficial for countries to trade with each other instead of trying to produce everything themselves. |
| Interdependence | Being mutually dependent. For example, countries trading with each other become dependent on the products or goods received from the other country. |
| Taxes | How the government makes money to operate |
| Federal Reserve | The federal bank of the United States which seeks to control the US economy by raising and lowering the interest rates. |
