Econ chapter 2 and 3

A market which households purchase the goods and services that firms produce.

• Product market

• Factor market

• Incentive

• Specialization

An expectation that encourages people to behave in a certain way.

• Profit

• Specialization

• Incentive

• Product market

Power of consumers to decide what gets produced.

• Factor market

• Market

• Consumer sovereignty

• Factor market

Market in which firms purchase the factors of production from households.

• Profit

• Product market

• Incentive

• Factor market

Financial gain made in a transaction.

• Specialization

• Profit

• Market

• Incentive

Concentration of productive efforts of individuals and firms on a limited number of activities.

• Specialization

• Product market

• Consumer sovereignty

• Profit

An arrangement that allows for exchange among buyers and sellers.

• Product market

• Factor market

• Market

• Specialization

An economic system in which the central government makes all decisions on production and consumption of goods and services is a ​ ​

• centrally planned economy
• business firms
• traditional economy
• economic system
• market economy

When people earn income for supplying land, labor, capital, or entrepreneurship, they receive ​     ​

• factor payments
• traditional economy
• economic system
• market economy
• centrally planned economy

An encyclopedia entry illustrating how a hunter-gatherer group collects and shares food resources is describing that society’s _______________________ .

• traditional economy

• economic system

• market economy

• centrally planned economy

• safety net