5.03 Flashcards
(21 cards)
Economy
The production and use of goods and services in a society.
Common Good
The greatest possible conditions of society for the greatest number of people living in it.
Supply
The total amount of a good or service available for purchase.
Demand
The total amount of a good or service that people are willing to buy
Economic Systems
The approach a country uses to deal with scarcity and achieve its economic goals
Traditional Economy
An economy based on culture and tradition to control the market.
Mixed Economy
An economy with individual economic freedom mixed with some government economic planning and regulation
Command Economy
An economy that is planned and controlled by the national government
Founding Fathers
Name given to the early leaders of the United States who helped design the nation’s government
U.S. Constitution
Plan detailing the structure, functions, and powers of the government of the United States, also known as the Congress.
Market Economy
An economic system that relies upon supply and demand to distribute resources and determine prices
Laws
A rule established by government or other source of authority to regulate people’s conduct or activities.
Regulations
An official rule or order that guides behavior related to laws, or to carry out a law.
Antitrust
Intending to prevent businesses from using practices that both prevent competition and lead to unfair profits
Monopoly
A single business that controls the market for a good or service
Patent
A document protecting the right of an inventor to make or sell an invention
Innovations
A new invention, improvement, or new way of doing something
Price Control
A maximum or minimum price set by law
Sherman Antitrust Act
Federal legislation from 1890 outlawing actions that lead to the creation of a monopoly.
Efficient
Well organized and able to achieve goals with a minimum of resources, time, and effort.
Natural Monopolies
A product produced most efficiently when there is one supplier, such as electricity.
