Marketing Vocabulary #6

 

1.                  Monopoly – exclusive control over a product or the means of producing it (not permitted in free enterprise because they prevent competition)

 

2.                  Surplus – supply exceeds demand

 

3.                  Shortage – demand exceeds supply

 

4.                  Scarcity – not enough resources for consumer demand

 

5.                  Market economy – no government involvement in economic decisions

 

6.                  Command economy – a system in which the government controls the factors of production and makes all decisions about their use. 

 

7.                  Mixed economy – some government involvement in the economy through mandatory laws and regulations that businesses follow

 

8.                  Socialist – a political system where there is an increased government involvement in people’s lives and the economy.

 

9.                  Communism – totalitarian form of government – where the government runs everything

 

10.              Privatization – process of selling government owned businesses to private individuals