Chapter 2 Vocab

The idea that people rule the market:

• Economic system

• Consumer sovereignty

• Capitalism

• Private property

A society organized way of providing for its peoples wants and needs:

• Command economy

• Traditional economy

• Economic system

• Capitalism

The driving force that encourages people to improve their material well-being:

• Private property

• Voluntary exchange

• Inflation

• Profit motive

A rise in the general level of prices

• Profit motive

• Inflation

• Capitalism

• Private property

A system in which the factors production are owned by private citizens:

• Fixed income

• Economic system

• Command economy

• Capitalism

The right and privilege to control ones own possession:

• Private property

• Voluntary exchange

• Profit motive

• Command economy

An economic system in which habit and custom dictate most economic and social behavior:

• Fixed income

• Command economy

• Traditional economy

• Consumer sovereignty

An economic system in which a central authority makes economic decisions:

• Traditional economy

• Capitalism

• Economic system

• Command economy

The situation in which the money one receives does not increase even though prices go up:

• Inflation

• Voluntary exchange

• Fixed income

• Economic system

The act of buyers and sellers freely conducting business in market:

• Voluntary exchange

• Economic system

• Private property

• Traditional economy