Goals of Society
The structure of methods and principles a society uses to produce and distribute goods and services.
What is an ECONOMIC SYSTEM
The process of bringing new methods, products, or ideas into use.
What is INNOVATION
A customer's own personal gain when involved in buying or selling.
What is SELF-INTEREST
In this type of economy, answers to the three basic economic questions are made by voluntary exchange in markets
What is a FREE MARKET ECONOMY
In this economy the government, rather than individual producers and consumers, answers the three basic questions; a central bureaucracy decides what items to produce, how to produce them, and who gets them.
What is a CENTRALLY PLANNED ECONOMY
The income people receive in return for supplying factors of production—land, labor, or capital.
What is FACTOR PAYMENTS
The type of economy that relies on habit, custom, or ritual to answer the three basic economic questions.
What is TRADITIONAL ECONOMY
The hope of reward or fear of penalty that encourages a person to behave in a certain way.
What is an INCENTIVE
A person or group of people living in a single residence.
What is a HOUSEHOLD
economic and political systems based on the belief that wealth should be evenly distributed throughout society.
What is SOCIALISM
The amount of money a business receives in excess of its expenses.
What is PROFIT
Any arrangement that allows buyers and sellers to exchange things.
What is a MARKET
Term used by Economists to describe the struggle among producers for the dollars of consumers
What is COMPETITION
An organization that uses resources to produce a product or service, which it then sells.
What is a BUSINESS or FIRM
In this economy the central government owns and controls all resources and means of production and makes all economic decisions.
What is COMMUNISM
A set of programs, provided by the government, to protect people who face unfavorable economic conditions such as layoffs, injuries, or natural disasters.
What is a SAFETY NET
The concentration of the productive efforts of individuals and businesses on a limited number of activities.
What is SPECIALIZATION
Phrase used by Adam Smith when no consumer or producer has made decisions based on what’s good for the marketplace, yet the end result is a marketplace that operates efficiently.
What is THE INVISIBLE HAND
The arena in which households buy the goods and services that firms produce.
What is a PRODUCT MARKET
Governments that limit individual freedoms and require strict obedience from their citizens.
What is an AUTHORITARIAN GOVERNMENT
A nation's level of economic prosperity.
What is STANDARD OF LIVING
Scottish social philosopher, who in 1776, published a book titled The Wealth of Nations that described how markets function.
Who was ADAM SMITH
The three (3), Economic Advantages of a Free Market.
What is EFFICIENCY, FREEDOM, and GROWTH
This type of economy opposes private property, free market pricing, competition, and consumer choice.
What is a COMMAND ECONOMY
These two countries most closely linked to Communist economies.
What is CHINA and RUSSIA