| 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. |
| 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. |
| Specialization | When a country focuses on producing only products that it can produce efficiently |
| Interdependence | Being mutually dependent. For example, countries trading with each other become dependent on the products or goods received from the other country. |
| Mixed Ecomony | Economies that have features of both a market economy and a command economy; almost all economies today are mixed, including the US. |
| 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. |
| The Federal Reserve | The central bank of the United States. It is really a network of 12 banking districts in major cities around the United States. |
| Income Tax | Taxes that are collected off of what a person is paid at his/her job. |
| Excise Tax | Taxes on the manufacture or sale of certain items, such as gasoline or airline tickets. |
