Government control of prices

Private ownership of resources

Voluntary exchange

Central planning

Government sets all prices for goods and services.

Businesses compete to attract consumers.

Consumers have no choice in what they buy.

There is no motivation for profit.

Hailee, a restaurant owner, makes sure to keep the kitchen clean in case a state health inspector comes.

Bridget thinks lunch at Pizza Palace is too expensive, so she eats at Antonio's Pizza instead.

American Motor, a car manufacturer, must reduce its cars' emissions to meet federal requirements.

Payton receives two job offers for similar positions and accepts the job that pays more.

income

revenue

costs

spending