command economy
An economy in which most economic decisions are made by a central
planning authority.
free-market economy
An economy in which most economic decisions are made by private
households and firms.
mixed economy
An economy in which some economic decisions are made by firms and
households and some by the government.
normative statement
A statement about what ought to be; it is based on a value judgment.
positive statement
A statement about what actually is, was, or will be; it is not based on a
value judgment.
variable
Any well-defined item, such as the price or quantity of a commodity, that
can take on various specific values.
endogenous variable
A variable that is explained within a theory. Sometimes called an induced
variable or a dependent variable.