Lesson Glossary
economic system
The laws, institutions, and common practices that help a country determine how to use its resources to satisfy as many of its people’s needs and wants as possible.
barter
The trading of goods and services without the use of a monetary system; such transactions are common in traditional economies.
command economy
An economic system in which production decisions are made by government-appointed central planners.
market economy
An economic system in which production decisions are made by the actions of buyers and sellers in the marketplace.
private enterprise
A term applied to the private ownership of productive resources, a characteristic of market economies.
mixed economy
An economic system, such as Canada’s, that contains elements of market, command, and traditional systems.
Productivity
A firm’s ability to maximize output from the resources available, usually measured as the firm’s output per worker.