Bodamer Economics Ch 2

1.  Level of economic prosperity.

• Standard of Living
• Economic System
• Profit
• Self-Interest 

The power of consumers to decide what gets produced.

• Market
• Consumer Sovereignty
• Command Economy
• Specialization

A political system characterized by a centrally planned economy with all economic and political power resting in the hands of the central government.

• Socialism
• Free Enterprise
• Communism
• Traditional Economy

“Hands-off”

• Traditional Economy
• Laissez Faire
• Free Enterprise
• Incentive

The concentration of the productive efforts of individuals and firms on a limited number of activities.

• Specialization
• Firm
• Profit
• Mixed Economy

The financial gain made in a transaction.

• Profit
• Competition
• Firm
• Market

The income people receive for supplying factors of production, such as land, labor or capital.

• Profit
• Factor Payments
• Incentive
• Free Enterprise

Economic system in which a central authority is in command of the economy.

• Command Economy
• Mixed Economy
• Centrally Planned Economy
• Traditional Economy

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

• Centrally Planned Economy
• Mixed Economy
• Traditional Economy
• Market Economy

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

• Free Enterprise
• Consumer Sovereignty
• Economic System
• Market