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The doctrine that government generally should not intervene in the marketplace (Hands off)

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The process of selling businesses or services operated by the government to individual investors, and then allowing them to compete in the marketplace

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An economic system that relies on habit, custom, or ritual to decide the three basic economic question

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An economic system in which the government makes all decisions on the three key economic questions

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Economic system that has some market-based elements and some level of government involvement

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The power of consumers to decide what gets produced

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The hope of reward or fear of penalty that encourages a person to behave in a certain way

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The struggle among producers for the dollars of consumers

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The arena of exchange in which firms purchase the factors of production from households

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The use of fewer resources than an economy is capable of using

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Economic model that shows the flow of money through the economy

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A graph that shows alternative ways to use a country’s productive resources

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A phrase expressing the idea that a country that decides to produce more military goods (“guns”) has fewer resources to produce consumer goods (“butter”) and vice versa

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The most desirable alternative given up as the result of a decision

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The act of giving up one benefit in order to gain another, greater benefit

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The knowledge and skills a worker gains through education and experience

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The human-made objects used to create other goods and services

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The resources that are used to make goods and services

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The study of how people seek to satisfy their needs and wants by making choices

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The principle that limited amounts of goods and services are available to meet unlimited wants