Command Economy: economy in which government or some other central controlling body, provides the answers to the three major questions: what, why, and for whom; the Soviet Union had a largely command economy
Market Economy: economy in which the uncoordinated actions of buyers and sellers of goods, services, and resources direct the economic system Private Property Rights: rights of individuals and corporations to own not only consumer goods, such as shoes and televisions, but also goods used in production, such as factories and machines Profit: amount left over after all the costs have been met from the income of a business |
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