section 1.1

Competition

the rivalry among business to sell their products and services to consumers

Private property

you can own, use, and dispose of things of value

If you were a citizen that transitioned from traditional to market economy what are some changes you would find?

If I were a citizen in a country that converted from traditional to market economy some changes I would find are that it would move faster and production would be easier to produce being able to use more modern day tools. I would also have more variety of options to buy and sell.

What countries have adopted market economies?

Market economies have been adopted into many countries throughout the world that had formerly had command economies because they give the business owners more freedom to produce.

What are the major differences between a command economy and a market economy?

The major difference between a command economy and a market economy is that a command economy the government controls what is produced and how it will be shared and in a market economy people have more freedom and can make their own decisions. This is a major difference because the command economy has limited freedoms whereas the market economy has more freedom.The difference is important to me because i would want to have more control over my business and be able to decide what I will produce.

What is the most important characteristic of a market economy?

The most important market economy characteristic is the freedom to make your own decisions, such as what you want to produce. This would be very important to me as a business owner because i would want the freedom to run my business the way i want to and be able to have the freedom to produce what I want. As a citizen it would matter to me because I would want to get products that are the best and I feel they would be the best from the people who want to produce what they are producing.

Private enterprise

an individual's right to own a business, select a market to enter, and produce with limited government direction

capitalism

economic resources are privately owned by individuals rather than the government

Scarcity

the conflict between unlimited wants and limited resources

Profit motive

the desire to work hard, to be creative, and to satisfy customers in order to earn a profit

Market economy

business and individuals are free to make their own decisions as they buy and sell in their own marketplace

Free enterprise

individual owners of business are free to decide what they will produce

Profit

the amount of money left over when subtracting the expenses of operating a business from its income-- it is a reward for taking risks

marketplace

where sellers and buyers do business