| A | B |
|---|
| incentives | positive and negative rewards |
| competition | a variety of goods, low prices/high quality |
| freedom | individuals are free to make economic choices |
| pure command system | government authorities make decisions |
| pure market system | decisions would be made in the marketplace |
| voluntary exchange | both the buyer and seller agree on the exchange |
| private ownership | owners determine how property is used |
| limited government | government provides the structure |
| circular flow chart | a model of a market economy |
| households | individuals in society |
| firms | businesses |
| factor market | households sell to firms |
| product market | firms sell to the household |
| National Income | total of all wages,salaries,interest,etc. |
| Gross National Product | the total value of the final goods/services produced in a year |
| Consumer Price Index | a measure of changes in the cost of living |
