Economics: Chapter 2 Key Terms

An economy in which a central government authority makes all basic economic decisions and controls the factors of production.

• Command Economy

• Market Economy

• Mixed Economy

• Free Enterprise

An economy in which the government has little say in what, how, and for whom goods are produced and in which the factors of production are owned by individuals.

• Market Economy

• Command Economy

• Mixed Economy

• Communism

An economy that combines elements of the traditional, market, and command economic models.

• Mixed Economy

• Market Economy

• Command Economy

• Price Stability

An economic system in which the government owns or controls nearly all factors of production; also known as communism.

• Authoritarian Socialism

• Capitalism

• Democratic Socialism

• Standard of Living

An economic system in which the government owns or controls nearly all factors of production; also known as authoritarian socialism.

• Communism

• Command Economy

• Market Economy

• Mixed Economy

A market-based economic system in which individuals own and control the factors of production.

• Capitalism

• Communism

• Free Enterprise

• Mixed Economy

An economic system in which some means of producing and distributing goods are owned or controlled by an elected government.

• Democratic Socialism

• Authoritarian Socialism

• Capitalism

• Communism

System in which private business operates with minimal government involvement.

• Free Enterprise

• Price Stability

• Standard of Living

• Authoritarian Socialism

The condition that exists when overall price levels remain relatively constant over a period of time.

• Price Stability

• Capitalism

• Mixed Economy

• Communism

People's economic well-being as determined by the quantity of goods and services they consume in a given time period.

• Standard of Living

• Command Economy

• Market Economy

• Mixed Economy