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Market
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Any place where, or mechanism by which, buyers and sellers interact to trade goods, services, or resources
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Specialization
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The practice of using available resources to produce a single good or service rather than multiple goods and services.
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Property right
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The exclusive right to determine how a resource is used.
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Private property
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Property owned by individuals
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Common property
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Property owned by groups (of individuals, firms, etc.)
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Public property
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property owned by the government
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Rule of law
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System where a society enforces property rights, contracts, and other rules according to an established and uniform set of laws and judicial system instead of arbitrary decisions
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Rule of men
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A system where the rules are enforced by the good will of the enforcer, such as a monarch or other ruling group
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Rule of force
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A system where the strong enforce the rules according to their whim, also known as "might makes right"
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Property rights
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The exclusive right to determine how a resource is used.
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Competitive market
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A market with many buyers and sellers, free entry and exit, and no externalities.
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Externality
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The benefit enjoyed by or cost imposed on a third party not directly involved in the production or consumption of a good or service.
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Market power
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The ability to influence the price of a good or service by changing the quantity produced.
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Entrepreneur
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A person who organizes resources, like land, labor, and capital, to develop a new product or method of production, and assumes the risk of bringing it to the market.
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Financial institution
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A firm that provides financial services, such as accepting deposits and providing loans to its customers.
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