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  1. 5. type of economy in which decisions are based on historical precedent rather than individual ability
  2. 8. producers will produce more when they can sell at a higher price and will produce less when they can sell at a lower price
  3. 12. the value of the second-best alternative that is given up when choosing the best option
  4. 14. central bank of the US; regulates member banks, provides financial services to the government, and manages the money supply to limit inflation
  5. 15. through their purchases, buyers determine what will be produced
  6. 17. structure of business in which all profit and risk is shared between two or more owners
  7. 24. economic model of ____ flow includes households, businesses, the government, the market for resources, and the market for goods and services
  8. 25. a factor of production that comes from nature, such as water, oil, apples, or land
  1. 1. structure of business in which all profit and risk belong to one owner
  2. 2. intersection of supply and demand at which everyone who wants to sell at that price can sell, and everyone who wants to buy at that price can buy
  3. 3. set by the Federal Reserve; the cost to banks of borrowing funds from the Fed; can be increased to shrink the money supply
  4. 4. combining human, natural, capital, and entrepreneurship resources to make goods or provide services
  5. 6. increase in prices that leads to a decrease in the purchasing power of money
  6. 7. type of economy defined by lack of consumer choice and centralized control (usually by the government) of property and resources
  7. 9. items, resources, and ideas that a person owns; protected by the government
  8. 10. legal entity in which all owners share the profits and each owner risks only the loss of their individual investment amount
  9. 11. set by the Federal Reserve; the minimum amount of consumer deposits that a bank must have on hand at the end of each day; can be increased to shrink the money supply
  10. 13. person who takes risks to produce/sell goods and services in search of profit
  11. 15. struggle between producers of similar goods and services that leads to better quality, lower prices, and increased selection for consumers
  12. 16. one producer controls all production of a single good or service
  13. 17. something that a person can use or benefit from without paying, such as highways or national defense
  14. 18. collected by federal and state government; based on the amount of pay earned
  15. 19. type of economy defined by ownership of private property, no government involvement, competition, and individual choice in economic decisions
  16. 20. resources and goods are limited, but wants and needs are not, which requires that choices be made
  17. 21. collected by local government; based on land, buildings, cars, boats and other large privately owned items
  18. 22. collected by state and local government; based on a percentage of the purchase price of a good
  19. 23. type of economy which includes some elements of free enterprise as well as government involvement