Circular Flow
An individual or group of people that share housing and income
What is a household?
To fulfill the needs of a society, the ___ ___ ___ must be answered.
Economic system that can lead to lack of economic freedom or incentive and low standard of living, but can provide jobs for all and adjust use of resources in production quickly due to all decisions being made by the same group
What is a command economy?
Being able to make decisions about where to work, opening businesses, and making purchases
What is economic freedom?
A diagram depicting the flow of goods and services from households to factor markets to firms to product markets
What is a circle flow diagram?
A privately owned organization that produces goods and services and sells them to others
What is a firm?
What is "what should be produced?"
Economic system that follows traditions and customs that have been around for a long time, resulting in lack of economic growth
What is a traditional economy?
What is economic security?
the quality of being just and fair
What is equity?
The place where resources are exchanged for money
What is a factor market?
Grace is baking a batch of chocolate chip cookies. She is deciding if she should offer them to both Jonina and Romy, or if she should just offer them to Jonina. This instance pertains to the question: ___
What is "for whom should goods and services be produced?"
Economic system leading to rapid economic growth, large economic incentive for entrepreneurs, and economic freedom
What is a market economy?
When an economy uses every opportunity to make someone better off without making anyone else worse off
What is efficiency?
Wages given to members of households in exchange for resources
What is household income?
The relationship of a household and product market are:
The product market provides (1) ___ ___ ___ in exchange for (2) ___ from the household.
What are (1) goods and services and (2) purchases?
Olivia is wondering whether she should use whole wheat or white bread in her sandwich-making business. This pertains to the question ___
What is "how should it be produced?"
Economic system that is similar to a market economy, but with government interference providing things such as healthcare and education
What is a mixed economy?
The ability of an economy to be efficient and still have resources for the future
What is sustainability?
An increase of production of goods and services in an economy due to innovation
What is economic growth?
The relationship between factor markets and firms are:
Factor markets provide (1) ___ in exchange for (2) ___ ___ from firms.
Economic question pertaining to equity
What is "for whom should it be produced?"
The most popular economic system type today
What is a mixed economy?
What is an economic system?
Giving up one thing for another
What are tradeoffs?