1. Term 1
Economic system: An organized way of providing for the wants and needs of a countries people.

2. Term 2
Traditional economy: Nearly all economic activity comes from ritual, habit, or custom.

3. Term 3
Command economy: A central authority makes most of the WHAT, HOW, and FOR WHOM decisions. Economic decisions are made by the government.

4. Term 4
Market economy: People and businesses act in their own best interests to answer the WHO, WHAT and HOW questions. A market is an arrangement that allows buyers and sellers to come together in order to exchange goods and services.

5. Term 5
Social Security: A federal program of disability and retirement benefits that covers most working people.

6. Inflation: A rise in the general level of prices.
Term 6
Inflation: A rise in the general level of prices.

7. Term 7
Fixed income: An income that does not increase even though prices go up.

8. Capitalism: People (citizens) own the factors production.
Term 8
Capitalism: People (citizens) own the factors production.

9. Term 9
Free enterprise: Competition is allowed to flourish with a little government influence.

10. Term 10
Voluntary exchange: The act of buyers and sellers freely and willingly engaging in market transactions.

11. Term 11
Private property rights: A privilege that entitles people to own and control their possessions as they wish.

12. Term 12
Profit: Is the extent to which persons or organizations are better of at the end of the a period than they were at the beginning.

13. Term 13
Profit motive: The driving force that encourages people and organizations to improve their material well-being.

14. Term 14
Competition: The struggle among sellers to attract consumers while lowering costs.

15. Term 15
Consumer sovereignty: Called the consumer is always right or the consumer is the ruler of the market.

16. Term 16
Mixed economy: People carry on their economic affairs freely, but are subject to some government intervention and regulation.