| A | B |
|---|
| Distribution | the way total output, income, or wealth is distributed among individuals or among the factors of production |
| Consumption | the use of goods and services by households |
| Consumer Sovereignty | The idea that the consumer is the best judge of his or her own welfare |
| Private Property Rights | the theoretical and legal ownership of resources and how they can be used |
| Profit Motive | the intent to achieve a monetary gain in a project, transaction, or material endeavor |
| Voluntary Exchange | the act of buyers and sellers freely and willingly engaging in market transactions |
| Traditional Economy | based on customs, history and time-honored beliefs |
| Command Economy | key aspect of a political system in which a central governmental authority dictates the levels of production that are permissible and the prices that may be charged for goods and services |
| Market Economy | is an economic system where two forces, known as supply and demand, direct the production of goods and services |
| Mixed Economy | an economic system that combines elements of both a market economy and a command economy. some resources and businesses are privately owned while others are owned by the government |
| Barter Economy | an act of trading goods or services between two or more parties without the use of money |
| Competition | is a scenario where different economic firms are in contention to obtain goods that are limited by varying the elements of the marketing mix: price, product, promotion and place |
| Adam Smith | an 18th-century Scottish philosopher; he is considered the father of modern economics |
| Laissez-Faire | an economic theory from the 18th century that opposed any government intervention in business affairs. |
| Invisible hand principle | a metaphor for the unseen forces that move the free market economy. |
| Free Enterprise | an economy where the market determines prices, products, and services rather than the government. |
| Capitalism | economic system in which private actors own and control property in accord with their interests, and demand and supply freely set prices in markets in a way that can serve the best interests of society. |
| a | a |
| a | a |
| a | a |
