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2.03 Key Terms
Term | Definition |
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Commend Economy | An economic system in which all or many of the means of production and distribution are owned and controlled by the government. |
Communism | A command economic system in which the government controls the economic system and does not allow private ownership of the means of production and distribution. |
Economic System | The organized way in which a country handles its economic decisions and solves its economic problems. |
Market Economy | The organized way in which a country handles its economic decisions and solves its economic problems. |
Socialism | A modified command economic system in which government owns the basic means of production and allows private ownership of business as well. |
Traditional Economy | An economic system in which people produce only what they must have in order to exist; all economic decisions are based on habit and tradition. |