PFL - Unit 2 Vocabulary Quiz #1

economic system where the government makes all decisions about the production and distribution of goods

• Market economy

• Command economy

• Mixed economy

• Free enterprise

private ownership and voluntary exchange

• Socialism

• Communism

• Free enterprise

• Nationalization

the total value of goods and services produced per person in a country

• GDP per capita

• Aggregate demand

• Fiscal policy

• Price stability

the process of transferring ownership of a business from the public sector to the private sector

• Nationalization

• Privatization

• Social welfare

• Isolationism

the desire to earn a profit in business

• Profit motive

• Income

• Aggregate supply

• Regressive taxes

the economic policy that involves government spending and taxation to influence the economy

• Fiscal policy

• Price stability

• Macroeconomics

• Progressive taxes

the average number of people living in a square kilometer or mile

• Population density

• Aggregate demand

• Social welfare

• Isolationism

a tax system where the tax rate increases as the taxable amount increases

• Regressive taxes

• Progressive taxes

• State taxes

• National taxes

the economic concept that involves the total demand for goods and services within an economy

• Aggregate supply

• Aggregate demand

• Price stability

• Income

economic system where both the private sector and the government direct the economy

• Command economy

• Mixed economy

• Socialism

• Capitalism