Ch. 2- Economic Systems

the way a society uses its scarce resources to satisfy its peoples unlimited wants

• economic system

• traditional system

• command economy

• market economy

an economic system in which the government makes all economic decisions.

• market economy

• traditional system

• economic system

• command economy

economic system in which families, clans, or tribes make economic decisions based on customs and beliefs that have been handed down from generation to generation

• economic system

• traditional economy

• command economy

• market economy

a system in which the society leaders, usually members of the central government, make all economic decisions

• market economy

• command economy

• centrally planned economy

• socialism

an economic system in which the government owns some or all of the factors of production, developed from the ideas of Karl Marx

• command economy

• market economy

• socialism

• traditional system

a more extreme form of socialism in which there is no private ownership of property and little or no political freedom; the government owns all the factors of production.

• Level 2 socialism

• authoritarian

• communism

• market economy

system requires absolute obedience to authority

• Free market

• communism

• socialism

• authoritarian

the rights of individuals and groups to own businesses and resources.

• private property rights

• laissez faire

• communism

• socialism

any place or situation in which people buy and sell resources and goods and services

• laissez faire

• market

• private property rights

• capitalism

the principle that the government should not interfere in the marketplace.

• laissez faire

• capitalism

• market

• Anno Domini