Chapter 2 Flashcards
(9 cards)
1
Q
Traditional
A
Make economic decisions based on customs and beliefs that’s handed down from generation to generation.
2
Q
Command
A
Government makes all economic decisions
3
Q
Market
A
Individual choice and voluntary exchange
4
Q
Voluntary exchange
A
Trade in which parties involved anticipate that the benefits will outweigh the cost
5
Q
Authoritarian
A
Requiring absolute loyalty and obedience to authority
6
Q
Socialist
A
Government owns some or all factor of productions.
7
Q
Factor market
A
Market for factors of production- land, labor, capital, and entrepreneurship
8
Q
Producer market
A
The people that make the goods and services
9
Q
Economic system
A
Society uses its scarce resources to satisfy its people’s unlimited wants
