| A | B |
|---|
| SYSTEM | A WAY OF DOING SOMETHING |
| ECONOMIC SYSTEM | A METHOD USED BY SOCIETY TO DISTRIBUTE GOODS AND SERVICES |
| INCOME | FACTOR PAYMENTS |
| BARTER ECONOMY | A METHOD OF EXCHANGING GOODS AND SERVICES USING OTHER GOODS AND SERVICES |
| UNDERDEVELOPED | INDUSTRIAL OR ECONOMICALLY BACKWARDS |
| RETARDS | LIMITS OR RESTRICTS |
| INNOVATION | SOMETHING NEWLY INTRODUCED |
| SOCIALISM | A PARTIALLY CONTROLLED PRICE BASED SYSTEM THAT USES A COMBINATION OF MARKETS AND GOVERNMENT INTERVENTION |
| COMMUNISM | A SYSTEM THAT USES GOVERNMENT CONTROLLED PRICES AND GOVERNMENT CONTROLS ALL PRODUCTION AND CONSUMPTION DECISIONS |
| PASSIONATE | CAPABLE OF HAVING STRONG OR INTENSE FEELINGS |
| STAGNATION | FAILURE TO PROGRESS OR DEVELOP |
| PROFIT | THE FINANCIAL GAIN MADE IN A TRANSACTION |
| INCENTIVE | THE HOPE OF REWARD OR FEAR OF PUNISHMENT THAT MOTIVATES BEHAVIOR |
| COMPETITION | THE STRUGGLE FOR THE DOLLARS OF CONSUMERS BY PRODUCERS |
| RULE OF LAW | A SYSTEM IN WHICH PRINCIPLES ARE HELD IN HIGHER REGARD THAN INDIVIDUAL DESIRES |
| LAISSEZ-FAIRE | LIMITED GOVERNMENT INTERVENTION |
| HOUSEHOLDS | SUPPLY THE LABOR AND CAPITAL |
| FIRMS | ORGANIZATIONS THAT USE RESOURCES TO PRODUCE PRODUCTS AND SERVICES THAT ARE SOLD |
| FACTOR MARKET | WHERE RESOURCES (THE FACTORS OF PRODUCTION) ARE BOUGHT AND SOLD |
| PRODUCT AND SERVICE MARKET | WHERE FINISHED GOODS AND SERVICES ARE SOLD |
| CIRCULAR FLOW | THE INTERACTION BETWEEN THE FACTOR MARKET AND THE PRODUCT AND SERVICE MARKET |
| ECONOMIC EFFICIENCY | MAXIMIZE OUTPUT GIVEN SCARCE INPUTS |
| ECONOMIC FREEDOM | FREEDOM FROM GOVERNMENT INTERVENTION IN THE PRODUCTION AND CONSUMPTION OF GOODS AND SERVICES |
| ECONOMIC GROWTH | INNOVATION THAT IS THE RESULT OF COMPETITION |
| EQUITY | EQUAL OPPORTUNITY OR ACCESS |
| SOCIAL PROGRAMS | GOVERNMENT ECONOMIC ACTIONS DESIGNED TO ENCOURAGE A STABLE SOCIETY |
| PROLETARIAT | WORKING CLASS |
| PROSPERITY | TO BE FORTUNATE OR WELL OFF |
| COLLECTIVES | STATE OWNED FARMS AND FACTORIES |
| DEBILITATE | TO MAKE FEEBLE OR WEAK |
