Economic Systems Objective In this lesson, you will describe how different economic systems answer basic economic questions Glossary TERM DEFINITION allocation of resources the distribution of available resources according to the demands and needs of society communism socialism traditional economy ration market economy price rationing a type of rationing in which scarce goods are distributed to only those who are willing and able to pav command economies non-price rationing mixed economy firm property rights circular flow model household a residential unit consisting of people who dwell under the same roof injections leakages factor market market that helps firms buy and sell services related to factors of production, such as labor. capital. and raw materials product market