Inmate #123456 aka
Angela
Angela
When the government provides a safety net, which economic goal is it meeting?
Economic Security
Organization that uses resources to produce a product or service, which it then sells
Firm
Arena of exchange in which firms purchase the factors of production from households
Factor Market
amount of money a business receives in excess of its expenses
profit
In one community, people follow customs when producing goods. This community is an example of what kind of economy?
Traditional
What is a market-based economic system in which government is involved to some extent
Mixed Economy
Describes a form of government that limits individual freedoms and requires strict obedience from its citizens
Authoritarian
economic system in which the government makes all decisions
Centrally planned
What does “consumer sovereignty” mean in a free market economy?
People are free to choose what they want to buy
The struggle among producers for the dollars of consumers
Competition
when government sells and gives control of a business to individual investors.
privatization
economic system in which decisions are based on voluntary exchange in markets
Free market
What might a government provide as part of a safety net for citizens?
Unemployment insurance
The doctrine that government generally should not intervene in the marketplace
Laissez-faire
range of economic and political systems based on the belief that wealth should be distributed evenly throughout a society
socialism
power of consumers to decide what gets produced
Consumer soveriegnty
What philosopher argued that a free market would regulate itself with little government involvement?
Adam Smith
set of government programs that protect people who face unfavorable economic conditions
Safety net
concentration of productive efforts on a limited number of activities
specialization
hope of reward or fear of penalty that encourages a person to behave in a certain way
Incentive