Economics - Chapter 2 - Vocabulary

tool that economists use to understand how market economies operate

the govenment owns all the factors of production & there is little or no political freedom

where goods and services are bought and sold

financial gain that a seller makes from a business transaction

systems that require absolute obedience to those in power

situation in which people concentrate their efforts in the activities that they do best

economic system in which the government makes all economic decisions

to change from government or public ownership to private ownership

refers to all the economic interactions that cross international boundaries

involves all the actions sellers do to get buyers to purchase their products

economy that has elements of traditional, command, and market systems

economic system in which the government owns some or all of the factors of production

trade where both traders believe what they're getting is worth more than what they're giving up

principle that the government shouldn't interfere in the marketplace

way a society uses resources to satisfy its' people's wants

any place where people buy & sell goods & services

economic system in which individual choice and voluntary exchange direct economic decisions

economic system that is based on private ownership of the factors of production

to change from private ownership to government or public ownership

people produce and distribute goods according to customs handed down through generations

consumers have the ultimate control over what is produced bc they're free to buy what they want

rights of individuals & groups to own businesses & resources

system in which central government officials make all economic decisions

market for the factors of production (land, labor, capital, and entrepreneurship)