SS Unit 5 6.7(B) Vocab

Command Economy

• - Government ownership of all production and distribution of goods and services.

• - Market forces determine the production and distribution of goods and services.

• - Individuals own the means of production and make economic decisions.

• - Government regulates but does not own major industries.

Goods

• A service provided to customers.

• A good is something that is grown or made to sell.

• An item that is always free of charge.

• A type of currency used in trade.

Ethics

• A set of principles of right conduct

• A collection of laws and regulations

• A personal belief system

• A method of scientific inquiry

Production

• The making of goods and services.

• The distribution of resources.

• The consumption of products.

• The marketing of goods.

Distribution

• A process that involves the production of goods and services.

• A step in the economic process which brings goods and services from those who make them to those who use them.

• The method of advertising products to consumers.

• A financial strategy for managing resources.

Traditional Economy

• - Economy is determined by past practices with little change.

• - People often do the same jobs as their parents.

• - Modern technology is widely used in production.

• - The economy is driven by market forces and competition.

Services

• A service is a job someone does for someone else.

• A service is a product that can be touched and owned.

• A service is a type of physical good sold in stores.

• A service is an online transaction without human interaction.

Mixed Economy

• Based on what is needed for the greater good (NOT the individual)

• Focused solely on individual profit and loss

• Driven by government regulations and control

• Emphasizes competition and free market principles

Economic System

• A method for organizing government operations.

• How a society organizes the production, distribution, and consumption of goods and services.

• A system for managing personal finances.

• A way to measure economic growth.

Free Enterprise System

• Production is based on privately owned businesses with little government involvement

• The government controls all production and distribution

• Resources are owned collectively by the community

• Prices are set by government regulation