Econ Chapter 2.1 Vocab
1. Economic System: how a nation uses its resources to satisfy its people’s needs and wants.
2. Society: a group of people in an area
3. Traditional Economy: use of scarce resources are
based on customs, ritual, or habits
4. Advantages: something good/positive/helpful
5. Disadvantage: bad/negative/hurts
6. stagnation: not changing
7. Command Economy: central authority (government) makes all major economic decisions
8. restricts: stops
9. bureaucracy: government does everything
10. Market Economy: the people make their own decisions for their best interests
11. Market: place where buyers and sellers exchange goods
and services
12. Capitalism: where citizens own the factors of
production and decide their use (private businesses)
13. inability: not able to do something
14. competition: trying to make more money than others
15. Mixed Economy: economy with a combination of
traditional, command, and market economies
16. Socialism: Mixed system where the government owns
some factors of production and also provides for its
people’s basic needs
17. Communism: all production owned by the government
18. strict: demanding
19. collectively: working together
20. inefficient: wasting time, failing to produce
