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Economic System
The structure of methods and principles a society uses to produce and distribute goods and services.
Price Mechanism
The way in which the forces of supply and demand determine the price of goods and services in a free market.
Efficient Allocation
The process where resources are distributed in a manner that maximizes the net benefits attained through their use.
Socialist Economy
An economic system where the production, distribution, and exchange of goods and services are controlled by the government with the aim of reducing inequality.
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