Define the Following Key Components of Economic System Flashcards

A particular set of institutional arrangements and a coordinating mechanism for producing good and services

An economic system in which most property resources are owned by the government and economic decisions are made by a central government body

An economic system in which property resources are privately owned and markets and prices are used to direct and coordinate economic activities

The right of persons and firms to obtain, own, control, employ, dispose of, and bequeath land, capital and other property

The freedom of firms to obtain economic resources, to use those resources to produce products of the firms' own choosing, and to sell their products in markets of their choice

The freedom of owners of resources to employ or dispose of them as they see fit, and the freedom of consumers to spend their incomes in a manner they think is appropriate

The most advantageous outcome as viewed by each firm, property, owner, worker, or consumer

The presence in a market of independent buyers and sellers vying with one another, and the freedom of buyers and sellers to enter and leave the market

What does competition require?

What is the basic regulatory force in the market system?

An institution or mechanism that brings buyers and sellers together

The use of resources of an individual, region, or nation to produce one or a few goods and services rather then the entire range of goods and services

The separation of the work required to produce a product into a number of different tasks that are performed by different workers

Any item sellers generally accept and buyers generally use to pay for goods and services

The exchange of one good or service for another good or service