| A | B |
|---|
| command economy | relies solely on the government |
| market economy | individuals: consumers/producers |
| market | free exchange of goods and services |
| self-interest | 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 three basic economic questions |
| authoritarian socialism | mixed economies that are closest to the pure command model |
| communism | system that government owns and controls all factors of production |
| traditional economy | generation to generation |
| capitalism | individuals own the factors of production and answer the basic economic question |
| democratic socialism | governmnet owns some of the factors of production |
