Vocabulary List 2
Economics / Mr. Henry
Vocabulary List 2
Economics / Mr. Henry
traditional economy- economic system in
which the allocation of scarce resources and
other economic activities are based on ritual,
habit, or custom
traditional economy- economic system in
which the allocation of scarce resources and
other economic activities are based on ritual,
habit, or custom
command economy- economic system with a
central authority that makes the major economic
decisions
command economy- economic system with a
central authority that makes the major economic
decisions
market economy- economic system in which
supply, demand, and the price system help
people make economic decisions and allocate
resources
market economy- economic system in which
supply, demand, and the price system help
people make economic decisions and allocate
resources
market- meeting place or mechanism that
allows buyers and sellers to come together
market- meeting place or mechanism that
allows buyers and sellers to come together
capitalism- economic system in which private
citizens own and use the factors of production in
order to generate profits
capitalism- economic system in which private
citizens own and use the factors of production in
order to generate profits
mixed economy- economic system that has
some combination of traditional, command, and
market economies
mixed economy- economic system that has
some combination of traditional, command, and
market economies
socialism- political and economic system in
which the government owns and controls some
factors of production
socialism- political and economic system in
which the government owns and controls some
factors of production
communism- economic and political system in
which all factors of production are collectively
owned and controlled by the state
communism- economic and political system in
which all factors of production are collectively
owned and controlled by the state
minimum wage- lowest legal wage that can be
paid to most workers
minimum wage- lowest legal wage that can be
paid to most workers
fixed income- income that does not increase
even though prices go up
fixed income- income that does not increase
even though prices go up
Social Security- federal program of disability
and retirement benefits that covers most
working people
Social Security- federal program of disability
and retirement benefits that covers most
working people
inflation- rise in the general level of prices
inflation- rise in the general level of prices
voluntary exchange- act of buyers and sellers
freely and willingly engaging in market
transactions
voluntary exchange- act of buyers and sellers
freely and willingly engaging in market
transactions
profit motive- incentive that encourages people
and organizations to improve their financial and
material well-being
profit motive- incentive that encourages people
and organizations to improve their financial and
material well-being
consumer sovereignty- role of consumer as
ruler of the market when determining the types
of goods and services produced
consumer sovereignty- role of consumer as
ruler of the market when determining the types
of goods and services produced