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- A system designed to minimize imbalance in wealth via the collective ownership of property.
- Includes a lack of incentives, risk taking, and innovation.
- Is an easily corruptable single-party system.
- A system that attempts to distribute wealth fairly.
- It has a pitfall of inadequate incentives.
- Wages are determined through negociations between trade unions and managers.
- It has more than one political party.
- A system where private individuals control the factors of production and operate them in the pursuit of profit.
- Wages are determined by the negociations between managers and unions.
- Supply and demand largely determine the allocation of scarce resources.
How much a person want to buy a good.
A graph that displays the relationship between price and then quantity demanded of a good within a given period.
A chart/table that displays the relationship between price and the quantity demanded of a good within a given period.
Law of Demand
A law that states that as the price of a good rises, the quantity of that good demanded by consumers falls.
Law of Diminished Marginal Utility
A law that states that the satisfaction gained from additional units of a good consumed will decrease in a given period.