Free Market Flashcards
1
Q
Free market
A
a self regulating economic system directed by individuals acting in their own self interest
2
Q
Specialization
A
the concentration of specific activities
3
Q
Adam Smith
A
Wrote Wealth of Nations
Explains self regulating nature of free market
4
Q
Factor market
A
When firms purchase the factors of production from a household
5
Q
Profit
A
the financial gain made
6
Q
Product market
A
When households purchase the goods that firms produce
