Chapter 2 economic systems and decision making

Income that doesn’t increase

Economic system in which private citizens own and use the factors of production.

Same as a free enterprise economy

Economic system characterized by a central authority that makes most of the economic decisions

Driving force that encourages people and organizations to improve their material well-being

Organized way a society provides for the wants and needs of its people

Private enterprise economy

Usually measured in dollars

Act of buyers and sellers freely and willingly engaging in market transactions