HANSON CH 2

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

• Economy

• market economy

• traditional economy

• command economy

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

• Economy

• market economy

• traditional economy

• command economy

Economic system characterized by a central authority that makes most of the major economic decisions

• Economy

• market economy

• traditional economy

• command economy

Economic system in which supply, demand, and the

price system help people make decisions and allocate resources

• Economy

• market economy

• traditional economy

• command economy

economic system in which government owns some factors of production and has a role in deciding economic decisions

• Socialism

• Communism

• Capitalism

• Mixed economy

economic and political system in which factors of

production are collectively owned, and directed by the state

• Socialism

• Communism

• Capitalism

• Mixed economy

Economic system in which private citizens own and use the

factors of production in order to generate profits

• Socialism

• Communism

• Capitalism

• Mixed economy

an economy which contains aspects of different types of economic systems

• Socialism

• Communism

• Capitalism

• Mixed economy

buyers control a market by deciding what goods and services they buy, so that suppliers produce mainly those goods

• consumer sovereignty

• Profit motive

• Competition

• Profit

the struggle among sellers to attract consumers while lowering costs

• consumer sovereignty

• Profit motive

• Competition

• Profit