Chapter 3 Flashcards
A system in which decisions involving the production, distribution, and consumption of goods are based upon custom, hereditary, and caste
Traditional Economy
A system in which a centralized authority determines the production and distribution of goods and services as well as things like savings, investments, and prices
Command Economy (planned or directed)
A system in which people are free to make their own economic choices
Free enterprise economy (market economy or capitalism)
An economic system that provides barely enough to keep a society alive
Subsistence Economy
The system in which the majority of a nation’s capital is owned and controlled by private individuals or corporations
Private Capitalism
System in which the owner of much of the nation’s capital is a powerful, centralized, collective state
State Capitalism
What is the fifth factor of production?
Information
No nation has a system that is _________ ____ or __________ _________.
Completely free, completely regulated
In a market economy, labor enjoys _______
Freedom
To an economist, capital means ________ ________ _____
Tangible producer goods
