Economic Systems
An ____________ is an organizational structure for addressing what, how, and for whom to produce.
Economic system
Resources are limited, tradeoffs necessary, multiple combinations
What should be produced?
The ___________ is a measure of comfort in terms of the goods and services available.
Standard of living
The ability to continue actions indefinitely.
Sustainability
A _______ consists of an individual or a group of people who live together and share income, such as you and your family.
Household
In a ___________ , decisions about resources are made by habit, custom, superstition, or religious tradition.
Traditional Economy
How should it be produced?
The quality of
being fair and just.
Equity
The prospect of a reward or punishment that influences a decision or motivates greater effort.
Incentive
A _____ is a privately owned organization that produces goods or services and sells them to others.
In a __________ , central planners make the important decisions about what, how, and for whom to produce.
Command Economy
Related with equity, more/less ______?
For whom should it be produced?
Citizens with _____________ have confidence in their ability to support themselves and their families.
Economic security
__________ is the placement of limits on the amount of goods each person can purchase.
Rationing
_________ are where goods and services are exchanged for money.
Product markets
In a ___________ , most key economic decisions are
made by business owners and consumers.
Market economy
A __________ is a legal claim of ownership.
Property right
Any form of government
assistance for those with
financial needs.
Social safety net
An economic system based on private (individual or business) ownership of resources and voluntary exchange.
Free-enterprise system
____________ are where resources are exchanged for money.
Factor markets
A __________ combines a market economy with significant government involvement and elements of
tradition.
Mixed economy
A __________ is a good or service that can be consumed by many people at once and that other people can’t be prevented from using.
Public good
___________ gives people the ability to make economic decisions for themselves.
Economic freedom
A ___________ illustrates the interactions between key players in the economy.
Circular flow diagram
___________ are payments for the use of
resources.
Factor payments