Economics Vocabulary #2

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Traditional Economy

Back

an economy in which production is based on customs and traditions and economic roles are typically passed down from one generation to the next.

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Free Market Economy

Back

an economic system in which prices are not controlled by the government, but instead driven by private ownership and competition.

Front

Command Economy

Back

an economy in which production, investment, prices, and incomes are determined centrally by a government.

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Mixed Economy

Back

an economic system combining private decision making with some government control.

Front

Profit

Back

the financial gain made in economics.

Front

Consumer Sovereignty

Back

the power of consumers to decide what gets produced.

Front

Regulations

Back

rules governing the operation of an economy. Acts as a guide for what the government will and will not allow.

Front

Opportunity Cost

Back

whatever must be given up to obtain some item.

Front

Expenses

Back

the cost required for something.

Front

Proprietorship

Back

a business owned by one person.