American Market Economy

Goods- Things that people want to buy.

Capital- The money needed to purchase goods.

Scarcity- The fact that there is a limited supplyof resources (money/goods)
-Drives every economy in history

Market Economy- An economic system based on internal free trade.

Command Economy- An economic system in which the government controls most of the decision making.

Mixed Economy- An economic system with a mixture of governmental and private control.
ie. Canada

Alienation- An emotional state experienced by people (workers) who feel seperated from the world in which they live and work.

Law of supply and Demand- An Unwritten law that drives economies. Demand decreases as prices rise. The point on a graph where supply and demand intersect creates the ideal market price for an item. (drives economy)

Equilibrium- Occurs in a competitive market when all market prices are determined by the intersection of supply and demand. (creates balance)

Monolopy- A market that is dominated by a single seller.
ie. microsoft, rockefeller

Antitrust Laws- Laws that the American government uses to break up any large buiseness group that may be acting as a monopoly to supress competition.