An arrangement that allows buyers and sellers to exchange things.

A person or a group of people living in the same residence.

Economic system that relies on habit, custom, or ritual to decide questions of production and consumption of goods and services.

Provided by the government, a shared good/service for which it would be inefficient to make consumers pay individually or to exclude non-payers.

An example of a public good.

The financial gain made in a transaction.

An organization that uses resources to produce a product, which it then sells.

Economic system in which decisions on production and consumption of goods and services are based on voluntary exchange by individuals.

The part of the economy that involves the transactions of the government.

The power of individuals to decide what gets produced in a market economy.

Government aid to the poor.

Someone who would not choose to pay for a good or service, but who would get the benefits of it anyway.

Economic system in which the government makes all decisions on the production and consumption of goods and services.

The part of the economy that involves the transactions of businesses and individuals.

Requiring strict obedience to a central authority or dictator.

An expectation that encourages people to behave in a certain way.

The concentration of the productive efforts of individuals and firms on a limited number of activities.

Economic system that combines the free market with limited government involvement.

The safety net in America’s market economy for individuals who retire.

Three countries that currently have a communist economy.

To sell state-run firms to individuals.

The total value of all final goods and services produced in a particular economy.

Both socialism and communism are economies within this type of economic system.

An economic side effect of a good/service that generates benefits or costs.

The four factors that measure economic strength in any given business cycle.