Economics Chapter 2: Vocabulary

extent to which a person or business is better off at the end of a period than in the beginning

market economy in which people are subject to some government regulation and intervention

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

the struggle among sellers to attract consumers while lowering costs

driving force encouraging people & businesses to improve their material well-being

role of consumer as ruler of the market in determining the types of goods and services produced

feature of capitalism that allows individuals to own and control their possessions as they wish

private citizens own and use the factors of production in order to generate profits

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

a federal program of disability and retirement benefits that covers most working people

income that does not increase even though the prices go up

economic system in which supply, demand, and the price system determine allocation of resources

economy in which competition is allowed to flourish with a minimum of government interference

economic system in which the allocation of resources is determined by ritual, habit, or custom

rise in the general level of prices

economic system characterized by a central authority that makes most major economic decisions