| A | B |
|---|
| Market/Free Enterprise/Capitalist Economic System | a system in which the economy is based on internal free trade. |
| Command Economic System | an economic system in which government controls most of the economic decision-making |
| Mixed Economy | an economic system in which some areas of the economy are privately controlled and some are controlled by government |
| inhibit | to prevent something from being expressed or realized |
| Alienation | an emotional state experienced by people, usually workers, who feel divorced or separated from the world in which they live and work |
| Karl Marx | strongly favored the Command Economy.. felt Market economy would make two classes of people (workers vs owners) |
| J.K Galbraith | A Canadian in favor of a Mixed Economy.. believed gov't should help out with programs to benefit all people. Sees the U.S. as too profit hungry. |
| Adam Smith | Father of modern market economics. Believed the "invisible hand" of Supply and Demand would ultimately control the economy |
| Law of Supply and Demand | an unwritten law that controls economies based on private property. Supply and Demand are the two factors that determine price. If graphed, the point where the two curves intersect would give you the ideal market price for an item |
| The Law of Supply | States that as the price of a product increases, producers will be more willing to produce more of that product. As the price of the product decreases, producers will make less. Producers want to sell Many products at the highest price possible |
| The Law of Demand | states as price increases, consumers will want to buy less. If the price decreases, consumers will want more. Consumers want to buy as much as they can at a lower price |
| Equilibrium | is reached in a perfectly competitive market when all market prices are derived by choosing the price that results from the intersecting curves of supply and demand.. A balance that pleases both consumers and producers. |
| Monopoly | is a market that is controlled by a single seller. eg. Microsoft |
| Antitrust Laws | are legislation by which governments break up any large business group that may be acting as a monopoly to suppress competition |
| Consumption | means that the goods produced have been used up. It includes both private and social decisions. |
| Consumer | a person who buys and uses food, clothing, shelter, or transportation, and includes repair and maintainance on a product that is bought |
| inflation | is a generalized, sustained, trend of rising prices. It results when demand is higher than supply. (your dollar has less buying power) |
| ombudsman | a person within a large company who listens to customer complaints and voices their opinions in company policy meetings. |
| BBB | Better Business Bureau |
| propaganda | a systematic effort to spread opinions or beliefs. Can be positive or negative. eg. religion, politics, sports, |
