Economic Terms

When supply is less than demand

When supply equals demand

An economic system where the government makes ALL the economic decisions

A payment made by a government to local business to help them compete

When supply is greater than demand

Adam Smith's name for the process by which buyers and sellers agree on a price

Mechanism by which consumers show their wants and needs to suppliers

A limit on the number of goods that can be imported

A country's land, labor, mineral wealth, and its citizens

A tax on goods entering a country

A market without government control

The reason we have to make choices

The belief that government should not interfere in the market is convey ed by the phrase:

Whose spending choices impact the U.S. economy the most?

An economic system where the government owns and operates basic industries

Everything that can be bought and sold

The science that deals with the production, distribution and consumption of goods

Title of a 1776 book by Adam Smith which describes how capitalist economies work