| A | B |
|---|
| traditional economy | Based on society’s values-its customs and traditions. |
| command economy | Relies on the gov’t officials to answer the 3 economic questions. |
| market economy | Individuals answer the 3 questions. The gov’t has no say. |
| market | Free exchange of goods & services. |
| self-interest | The impulse that encourages people to fulfill their needs and wants. |
| incentive | Something that encourages you to behave in a particular way |
| mixed economy | Combines elements of traditional, market and command economic models to answer the 3 questions. |
| authoritarian socialism | Communism |
| captialism | Individuals own the factors of production and answer the basic economic questions. |
| democratic socialism | Falls between communism and capitalism. The government owns some of the factors of production. In most cases it is limited to key industries. |
