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| The tendency of firms and resource suppliers that seek to further their own self-interests in competitive markets to also promote the interests of society. |
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| The right f private persons and firms to obtain, own, control, employ, dispose of, and bequeath land, capital, and other property. |
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| A market in which products are sold by firms and bought by households. |
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| the exchange of one good or service for another good or service |
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| An illustration showing the flow of resources from households to firms and of products from firms to households. These flows are accompanied by reverse flows of money from firms to households and from households to firms. |
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| A method of organizing an economy in which property resources are publicly owned and government used central economic planning to direct and coordinate economic activities; command economy; communism. |
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| The presence in a market of independent buyers and sellers competing with one another along with the freedom of buyers and sellers to enter and leave the market. |
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| Determination by consumers of the types and quantities of goods and services that will be produced with the scarce resources of the economy; consumers' direction of production through their dollar vote. |
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| The hypothesis that the creation of new products and production method simultaneously destroys the market power of existing monopolies. |
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| The separation of the work required to produce a product into a number of different tasks that are performed by different workers; specialization of workers. |
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| The "votes" that consumers and entrepreneurs cast for the production of consumer and capital goods, respectively, when they purchase those goods in product and resource markets. |
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| A particular set of institutional arrangements and a coordination mechanism for solving the economizing problem; a method of organizing an economy; pf which the market system and the command system are the two general types. |
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| The freedom of owners of property resources to employ or dispose of them as they see fit, of workers to enter any line of work for which they are qualified, and of consumers to spend their incomes in a manner that they think is appropriate. |
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| The freedom of firms to obtain economic resources, to use those resources to produce products of the firm's own choosing, and to sell their products in markets of their choice. |
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| Any institution or mechanism that brings together buyers and sellers of a particular good or service. |
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| All the product and resource markets of a market economy and the relationships among them; a method that allows the prices determined in those markets to allocate the economy's scarce resources and to communicate and coordinate the decisions made by consumers, firms, and resource suppliers. |
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| Any item sellers generally accept and buyers generally use to pay for a good or service. |
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| Any item that is generally acceptable to sellers in exchange for goods and services. |
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| A market in which households sell and firms buy resources or the services of resources. |
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| That which each firm, property owner, worker, and consumer believes is best for itself and seeks to obtain. |
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| The use of the resources of an individual, firm, a region, or a nation to concentrate production on one or a small number of goods and services. |
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