Econ Chapter 2 (Economic Concepts) Flashcards

Front

economic system

Back

the structure of methods and principles that a society uses to produce and distribute goods and services

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factor payment

Back

the income people receive in return for supplying factors of production

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profit

Back

A financial gain, esp. the difference between the amount earned and the amount spent in buying, operating, or producing something

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safety net

Back

government programs that protect people experiencing unfavorable economic conditions

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innovation

Back

An improvement of an existing technological product, system, or method of doing something.

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traditional economy

Back

An economy in which production is based on customs and traditions and economic roles are typically passed down from one generation to the next.

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market

Back

the arrangement that allows buyers and sellers to exchange things

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specialization

Back

the concentration of the productive efforts of individuals and businesses on a limited number of activities

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free market economy

Back

an economic system in which decisions on the three key economic questions are based on voluntary exchange in markets

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household

Back

a person or group of people living in a single residence