| A | B |
|---|
| Capitalism | economic system in which citizens possess the right to own private property and buy, sell, rent or trade that property in an open market |
| Monopsony | a single buyer |
| Socialism | system of government in which there is collective or governmental ownership of economic enterprises, aiming to have equality of results rather than just equality of opportunity |
| Monopoly | market containing only one seller of a good, service or resource |
| Oligopoly | market possessing only a few sellers of either a standardized or differentiated product |
| Interdependence | mutual dependence |
| Revenue | income before any deductions are taken out |
| Profit | amount of monetary gain after all production costs have been subtracted |
| Free Enterprise | the freedom of private businesses to operate in a competitive manner for profit, without government controls |
| Laissez-Faire | French term meaning “let do;” belief that the government should have a hands off approach and stay out of the economy |
| Private Ownership | the ability of individual citizens to own and operate resources at their own discretion |
| Pure Competition | markets with large numbers of buyers and sellers exchanging a homogeneous product |
| Homogenous | of or exhibiting similar features; two or more objects which are the same |
| Monopolistic Competition | markets where many companies purchase differentiated products, such as different makes of cars or brand names |
| Firm | an organization which employs resources in order to produce a good or service for a profit |
| Anti-Trust Laws | laws put in place by the government to allow fair access to markets for entrepreneurs and protects consumers from unfair practices |
| Oligopsony | a few buyers |
| Communism | system of government in which the government or other single totalitarian party owns and controls all means of production as well as determining to whom the goods and services will be distributed |
