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Related Flashcards
Related Topics
Cards In This Set
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Traditional Economy
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Economic system in which the allocation of scarce resources and other economic activity is the result of ritual, habit, or custom
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Command Economy
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Economic system characterized by a central authority that makes most of the major economic decisions
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Market Economy
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Economic system in which supply, demand, and the price system help people make decisions and allocate resources; same as free enterprise economy
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Social Security
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Federal program of disability and retirement benefits that covers most working people
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Inflation
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Rise in the general level of pricces
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Fixed Income
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Income that does not increase even though prices go up.
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Capitalsm
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Economic system in which private citizens own and use the factors of production in order to generate profits
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Free Enterprise
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Economy in which competition is allowed to florish with a minimum of government interfernce; term used to describe the american economy
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Voluntary Exchange
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Act of buyers and sellers freely and willingly engaging in market transactions; characteristic of capitalism and free enterprise
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Private Property Rights
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Fundamental feature of captilism, which allows individuals to own and control their possessions as they wish; includes both tangible and intangible property
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Profit
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Extent to which persons or organizations are better off at the end of a period than they were at the beginning; usually measured in dollars
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Profit Motive
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Driving force that encourages people and organizations to improve their material well-being; chracteristic of captilism and free enterprise
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Competition
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The struggle among sellers to attract consumers while lowering cost
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Traditional Economy
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Economic system in which the allocation of scarce resources and other economic activity is the result of Ritual, habit, or custom.
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Free Enterprise
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Economy in which competition is allowed to flourish with a minimum of government interfernce; term used to describe the american econmy
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