college economics ch.2 Flashcards
Command System
Government owns most property resources and economic decision making occurs through a central economic plan
Economic system
A particular set of institutional arrangements and a coordinating mechanism to respond to the economizing problem
Freedom of enterprise
Ensures that entrepreneurs and private businesses are free to obtain and use economic resources to produce their choice if goods and services to sell in chosen markets
Self-Interest
Each economic unit tries to achieve its own particular goal
which usually requires delivering something of value to others
Freedom of choice
Enables owners to employ or dispose of their property and money as they see fit
Market
A market system conveys the desicions made by buyers and sellers of products and resources
Households
One or more persons occupying a housing unit
Sole proprietorship
Business owned and managed by a single person
Partnership
Two or more individuals agree to own and operate a business
Corporatin
An independent legal that can act on its own behalf
Acquire resources,own assets, produce and sell products,incur debts,extend credit,sue and can be sued
Product market
The place where goods and services are brought and sold
Resource Market
Market where households sell resources to businesses
