Econ 2.1-2.4 Vocab Quiz

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

• Economic System

• Traditional Economy

• Market Economy

• Factor Market

the income people receive in return for supplying factors of production

• Factor Payment

• Standard of living

• Social Security

• Market

level of economic prosperity

• Product Market

• Standard of Living

• Market

• Developed Country

the process of bringing new methods, products, or ideas into use

• Price Competition

• Product Market

• Patent

• Innovation

an economic system that relies on habit, custom, or ritual to decide the three basic economic question

• Feudalism

• Traditional Economy

• Market Economy

• Command Economy

any arrangement that allows buyers and sellers to exchange things

• Consumer Soverignty

• Factor Market

• Specialization

• Market

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

• Consumer sovereignty

• Non-price competition

• Specialization

• Centrally Planned Economy

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

• Centrally Planned Economy

• Command Economy

• Free Market Economy

• Mixed Economy

the arena of exchange in which firms purchase the factors of production from households

• Factor Market

• Product Market

• Invisible Hand

• Communism

the arena of exchange in which households purchase goods and services from firms

• Factor Market

• Product Market

• Invisible Hand

• Consumer Sovereignty