Econ Lesson 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

Front

profit

Back

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

Front

safety net

Back

government programs that protect people experiencing unfavorable economic conditions

Front

innovation

Back

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

Front

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.

Front

market

Back

the arrangement that allows buyers and sellers to exchange things

Front

specialization

Back

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

Front

free market economy

Back

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

Front

household

Back

a person or group of people living in a single residence