Change: Dollar votes: what the consumers are most likely to spend their income on How will goods and services be produced? Who will get the output How will the system accommodate change? How will the system promote progress? Technological advance Capital accumulation The Invisible HandEvery exchange is mutually beneficialFirms   View changes from previous version. (Word count: 158)

Change: There were only format changes (bold, italics, etc.) in this version. See this version for details. (Word count: 198)

Change:  Households - provide resources to firms in exchange for payments to factors and use that income to exchange for the products firms produce Firms - provide payments to factors in exchange for resources from households to produce productsDiagram of Circular Flow Model note: this model does not include governments!   View changes from previous version. (Word count: 103)

Change:  Households - provide resources to firms in exchange for payments to factors and use that income to exchange for the products firms produce Firms - provide payments to factors in exchange for resources from households to produce productsDiagram of Circular Flow Model note: this model does not include governments!   View changes from previous version. (Word count: 174)

Change: - an economic system governed by a central authorities, socialism and communist systems. (eg: Cuba, DPRK, Soviet Union, China under Mao) They utilize whatever is available, everyone gets the same amount regardless of how much work they do. The Market System Characteristics of the Market System Private Property Freedom   View changes from previous version. (Word count: 108)

Change:  the output How will the system accommodate change? How will the system promote progress? Technological advance Capital accumulation The Invisible Hand The Demise of the Command Systems The Coordination Problem The Incentive Problem The Circular Flow Model Resource Market Product Market Households Firms Diagram of Circular Flow Model   View changes from previous version. (Word count: 108)

Change: There were only format changes (bold, italics, etc.) in this version. See this version for details. (Word count: 101)

Change: Economic SystemsThe Command SystemThe Market SystemCharacteristics of the Market SystemPrivate Property   View changes from previous version. (Word count: 15)