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| A way in which a nation uses its resources to satisfy its people's needs and wants. |
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| System in which economic decisions are based on customs and beliefs that have been handed down from generation to generation. |
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| System in which the government controls the factors of production and makes all decisions about their use. |
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| System in which individuals own the factors of production and make economic decisions through free interaction while looking out for their own and their families' best interests. |
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| The process of freely exchanging goods and services between buyers and sellers. |
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| Circular Flow of Income and Output |
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| Economic Model that shows income as flowing continuously between businesses and consumers. |
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| System combining characterisitics of more than one type of economy. |
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| Economic system in which private individuals own the factors of production. |
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| Economic system in which the government minimizes its interference with the economy. |
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| Economic system in which individuals own the factors of production and decide how to use them within legal limits; same as capitalism. |
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| Amount earned after a business subtracts its costs from its revenues. |
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| Desire to make money that motivates people to produce and sell goods and services. |
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| Rivalry among producers or sellers of similar goods and services to win more business. |
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| Whatever is owned by individuals rather than by government. |
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| Wise us of available resources so as to obtain the greatest benefits possible. |
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| The attempt to balance an economic policy so that everyone benefits fairly. |
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| The material well-being of an individual, group, or nation, measured by how well their necessities and luxuries are satisfied. |
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| Expansion of the economy to produce more goods, jobs, and wealth. |
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| System in which the government owns the major factors of production and attempts to manage output and the distribution of goods. |
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| Terms used by Karl Marx for his idealized society in which no government is necessary. |
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| System that works within the constitutional framework of a nation to elect socialists to office; the government usually controls only some areas of the economy. |
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| System that supports revolution as a means to overthrow capitalism and bring about socialist goals; the entire economy is controlled by a central government; also called communism. |
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