MYP Individuals & Societies Economic Decision-making and Production Key Definitions

An economic system in which individuals or firms own capital and employ labour to produce goods and services for sale, with investment and profit playing central roles.

A method of organizing an economy in which a central authority sets production goals and coordinates the allocation of resources.

An economic system where key production and allocation decisions are mainly made by the government through planning and direction.

A way a society organizes production and distributes resources, deciding what to produce, how to produce it, and who receives it.

An economic system where production and allocation decisions are mainly determined by markets and the price mechanism.

A curve showing the maximum possible output combinations of two goods or services that can be produced with available resources and technology, assuming resources are used efficiently.

The efficiency with which inputs (such as labour, capital, land, and technology) are converted into outputs (goods and services). It is often measured as output per worker or output per hour.

A system in which people are treated as property or are deprived of freedom and compelled to work through violence or coercion.

The concentration of production on a limited range of goods or services so that output can be produced more efficiently, often to trade for other goods and services.

A tax placed on imported goods, increasing their price in the domestic market.