Economics Chapter 2 Study Guide

An economic system in which basic economic decisions are made by a central authority

• mixed economy
• command economy
• traditional economy
• market economy

An economic system in which basic economic activity stems from ritual, habit, or custom

• mixed economy
• command economy
• traditional economy
• market economy

An economic system in which free economic activity is subject to some government intervention

• mixed economy
• command economy
• traditional economy
• market economy

An organized way of providing for the wants and needs of a society

• capatilism
• economic system
• fixed income
• market economy

An economic system in which basic economic decisions are made by people and firms acting in their own best interests

• market economy
• mixed economy
• capitalism
• economic efficiency

An economic goal based on the desire of people to make their own decisions

• voluntary exchange
• economic freedom 
• economic efficiency 
• profit motive

An economic goal based on preventing inflation

• capitalism
• price stability
• economic efficiency 
• profit motive

A federal program of disability and retirement benefits

• fixed income
• voluntary exchange
• social security
• price stability

An income that does not increase as price goes up 

• price stability
• profit motive
• social security
• fixed income

An economic goal that is based on the desire of people to use their resources wisely 

• economic freedom 
• economic efficiency 
• price stability
• economic system