Chapter 2: Economic Systems

Buyers and sellers freely engaging in market activites.

Who takes risks, provides jobs, provides new goods and services and seeks a profit?

Economy where people freely carry on economic affairs but deal with some government regualtions

Struggle between sellers to attract buyers.

Economic system where supply, demand, and price system help the people make economic decisions.

System that relies on habit, custom & ritual to decide question of production and consumption.

Economic system where private citizens own and use factors of production to obtain profits.

Which of the following is NOT a characteristic of capitalism?

System where central authority makes major decisions such as- what, how, & for whom to produce.

Federal program that benifits retired and disabled Americans, paid for by the working class.

Economic and political system where the government owns and controls all factors of production.

System where government owns some factors of production and has a larger role in the economy.