Chapter 2 Vocabulary

More extreme form of socialism in which there is no private ownership of property

To change from private ownership to government or public ownership

Change from government or public ownership to private ownership

A trade in which the parties involved anticipate that the benefits outweigh the cost

Visualizes how all interactions occur in a market economy

System in which the society's leaders make all economic decisions

Market for the factors of production

Absolute obedience to authority

All the economic interactions that cross international boundaries

Based on individual choice, not government directives

Idea that consumers have ultimate control over what is produced

Economic system in which families, clans, or tribes make economic decisions based on beliefs

The rights of individuals and groups to own property

A financial gain from a business transaction

Situation in which people concentrate their efforts in the areas where they have an advantage

Way a society uses its scarce resources to satisfy its people's unlimited wants

Economic system that has elements of traditional, market, and command economies

Any place or situation in which people buy and sell resources and goods and services

Market for goods and services

The effort of two or more people to get the business of others by offering the best deal

A French phrase meaning "leave things alone"

Government decides what goods will be produced, how they will be produced and distributed

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

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