Key features distinguishing market, command, and mixed economic systems. Front: the term or system. Back: a plain-language definition.
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- Market economy
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An economic system where prices determined by supply and demand direct production and consumption with minimal government intervention.- Command economy
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An economic system where the government centrally plans and controls production, distribution, and consumption decisions.- Mixed economy
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An economic system combining market mechanisms with government intervention to address market failures and provide public services.- Capitalism
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An economic system based on private ownership of capital, free markets, profit incentives, and competition.- Private property
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The right of individuals or businesses to own, use, and profit from assets and resources without government interference.- Price mechanism
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The system by which prices rise and fall to signal scarcity or surplus, guiding production and consumption decisions.- Supply and demand
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The economic principle that price tends toward a point where the quantity sellers want to provide equals the quantity buyers want to purchase.- Profit motive
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The incentive to earn income or returns on investment, driving producers to meet consumer needs efficiently and innovate.- Competition
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The contest between producers to attract customers through better products, prices, or service, encouraging efficiency and innovation.- Consumer sovereignty
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The principle that consumer preferences, expressed through purchases, determine which goods are produced and how many.- Invisible hand
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Adam Smith's concept that individuals pursuing their own self-interest in a competitive market unintentionally benefit the broader economy.- Free market
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An economy where goods and services are exchanged based on supply and demand with little or no government interference.- Laissez-faire
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A policy of minimal government intervention in economic affairs, allowing markets to self-regulate without rules or restrictions.- Self-interest
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The economic motivation where individuals and businesses act to maximize their own benefit, driving production and trade.- Central planning
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The process of a government agency deciding production levels, resource allocation, and distribution for the entire economy.
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