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Econ Systems Vocab

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Term
Definition
Economic System   Producing and distributing goods in an economy  
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Capitalism   Trade in industry that is owned by private owners  
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Capitalist   Wealthy person who invests in a trade based on a capital system  
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Entrepreneur   Person who invests in something that will either gain or loose money  
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Free Enterprise   Freedom of a private business to compete for profit  
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Voluntary Exchange   The free exchange among buyers and sellers  
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Private Property Rights   The right of ownership  
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Profit   To make money off of a product  
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Profit Motive   What motivates the buyer to invest in a business  
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Competition   Rivalry among businesses  
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Consumer Sovereignty   Consumers determine the production of goods  
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Inflation   Increase in price and fall in money value  
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Fixed income   Income that remains the same throughout time  
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