Economics Quiz 2- Kelley
Terms in this set (37)
the structure of methods and principles a society uses to produce and distribute goods and services.
the income people receive in return for supplying factors of production—land, labor, or capital.
the amount of money a business receives in excess of its expenses.
set of programs to protect people who face unfavorable economic conditions such as layoffs, injuries, or natural disasters.
standard of living
level of economic prosperity.
the process of bringing new methods, products, or ideas into use.
an economic system that relies on habit, custom, or ritual to decide the three basic economic questions.
any arrangement that allows buyers and sellers to exchange things
the concentration of the productive efforts of individuals and businesses on a limited number of activities
free market economy
an economic system in which decisions on the three key economic questions are based on voluntary exchange in markets
a person or group of people living in a single residence
an organization that uses resources to produce a product or service, which it then sells
the arena of exchange in which firms purchase the factors of production from households
the arena of exchange in which households purchase goods and services from firms
an individual's own personal gain
the hope of reward or fear of penalty that encourages a person to behave in a certain way
the struggle among producers for the dollars of consumers
the power of consumers to decide what gets produced
centrally planned economy
an economic system in which the government makes all decisions on the three key economic questions
command economy: another name for a centrally planned economy
a range of economic and political systems based on the belief that wealth should be distributed evenly throughout a society
a political system in which the government owns and controls all resources and means of production and makes all economic decisions
describes a form of government that limits individual freedoms and requires strict obedience from its citizens
the doctrine that government generally should not intervene in the marketplace
property that is owned by individuals or companies, not by the government or the people as a whole
intellectual property:creations, such as books, songs, or symbols, that consist of ideas rather than physical objects
economic system that has some market-based elements and some level of government involvement
a period of change in which a nation moves from one economic system to another
the process of selling businesses or services operated by the government to individual investors, and then allowing them to compete in the marketplace
the incentive that drives individuals and business owners to improve their material well-being
the principle that anyone can compete in the marketplace
the principle that everyone has the same legal rights
private property rights
the principle that people have the right to control their possessions and use them as they wish
the principle that people may decide what agreements they want to enter into
the principle that people may decide what, when, and how they want to buy and sell
love of one's country
the right of a government to take private property for public use
the concerns of society as a whole
public disclosure laws
laws requiring companies to provide information to consumers about their products and services