Chapter 2 Vocabulary

Market for goods and services

Absolute obedience to authority

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

To change from private ownership to government or public ownership

Market for the factors of production

Based on individual choice, not government directives

Idea that consumers have ultimate control over what is produced

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

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

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

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

A financial gain from a business transaction

Change from government or public ownership to private ownership

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

Visualizes how all interactions occur in a market economy

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

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

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

A French phrase meaning "leave things alone"

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

All the economic interactions that cross international boundaries

The rights of individuals and groups to own property

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