Unit 2: Economic Systems Review

Front

Economic System

Back

A method used by a society to produce and distribute goods and services.

Front

Factor payments

Back

Income earned for providing factors of production (land, labor, capital, entrepreneurship).

Front

Economic efficiency

Back

Using resources wisely to avoid waste.

Front

Economic freedom

Back

The ability to make personal economic choices.

Front

Economic security

Back

Assurance that goods and services are available when needed.

Front

Safety net

Back

Government programs to support people in economic hardship (e.g., unemployment, poverty, natural disasters).

Front

Economic equity

Back

Fairness in how resources and wealth are distributed.

Front

Standard of Living

Back

Level of economic prosperity.

Front

Traditional Economy

Back

Economic system that relies on habit and custom, or ritual to decide questions of production and consumption of goods and services.

Front

Market Economy

Back

Economic system in which decisions on production and consumption of goods are based on voluntary exchange in the markets.