PRINMBF - Ch 2 Vocabulary

All activities involved in developing and exchanging products

• Business
• Capitalism
• Competition
• Traditional Economy

An economic system where the economic resources are privately owned by individuals rather than the government

• Business
• Capitalism
• Competition
• Traditional Economy

Actions taken by two or more businesses attempting to attract the same customers

• Business
• Capitalism
• Competition
• Traditional Economy

Economy in which economic decisions are based on a society’s values, cultures, and customs

• Business
• Capitalism
• Competition
• Traditional Economy

An economy in which the government makes all the economic decisions for its citizens

• Command Economy
• Economic System
• Market Economy
• Marketplace

Organized way in which a nation chooses to use its resources to create goods and services

• Command Economy
• Economic System
• Market Economy
• Marketplace

An economy in which individuals are free to make their own economic decisions (also known as free enterprise)

• Command Economy
• Economic System
• Market Economy
• Marketplace

Anywhere buyers and sellers meet to buy and sell goods and services

• Command Economy
• Economic System
• Market Economy
• Marketplace

Individuals have the right to own property

• Private Property
• Private Enterprise
• Profit
• Profit Motive

Also known as a market economy or free enterprise

• Private Property
• Private Enterprise
• Profit
• Profit Motive