Economics Unit 2 Vocabulary

economic system in which private citizens own and use the factors of production in order to generate profits

economic and political system in which factors of production are collectively owned and directed by the state; theoretically classless society in which everyone works for the common good

organized way a society provides for the wants and needs of its people

economic system in which the allocation of scarce resources and other economic activity is the result of ritual, habit, or custom

What to produce? How to produce? For whom to produce?

Fundamental feature of capitalism, which allows individuals to own and control their possessions as they wish; includes tangible and intangible property

the driving force that encourages individuals and organizations to improve their material well-being; characteristic of capitalism and free enterprise.

role of consumer as ruler of the market when determining the types of goods and services produced

the struggle among sellers to attract consumers while lowering costs

protector, provider, regulator, consumer, producer

the act of controlling business behavior through a set of rules or laws

full employment, price stability, economic freedom, economic growth, economic efficiency, economic security, economic stability

Assigning available resources, or factors of production, to specific uses chosen among many possible and competing alternatives. It involves answering "What to produce" and "How to produce".

The way the national income is divided into "shares" ranging from the poor to the rich.

economic product that is consumed collectively; highways, national defense, police and fire protection