Econ Lesson 3 Vocab

What is Economic Freedom?

• The ability of people to make their own economic decisions without interference from the government.

• The fairness with which an economy distributes its resources and wealth.

• A condition in which everyone who wants to work can find a job.

• A diagram that shows the circular movement of money, resources, and goods and services.

What does Economic Equity refer to?

• The ability of people to make their own economic decisions without interference from the government.

• The fairness with which an economy distributes its resources and wealth.

• A condition in which everyone who wants to work can find a job.

• A condition in which the goods and services people count on are available when they want them.

What is a Market Economy?

• An economic system in which the workings of the market are not planned or directed.

• An economic system in which decisions about production and consumption are made by a powerful ruler or government.

• An economic system in which decisions about production and consumption are based on custom and tradition.

• An economic system in which economic decisions are left up to individual producers and consumers.

What is the Circular Flow Model?

• A market in which firms sell goods and services to households.

• A condition in which an economy is expanding and producing more and better goods and services.

• A market in which households sell land, labor, and capital to firms.

• A diagram that shows the circular movement of money, resources, and goods and services among households and producers in an economy.

What is Socialism?

• A condition in which the goods and services people count on are available when they want them.

• A condition in which everyone who wants to work can find a job.

• An economic system in which economic decisions are left up to individual producers and consumers.

• A political and economic philosophy based on collective or government ownership of a society’s resources and means of production.

What is a Transfer Payment?

• An agreement between a buyer and a seller.

• A government payment to a household or firm for which the payer receives no good or service in return.

• Income earned when an individual sells or rents a factor of production that he or she owns.

• The money earned by a business after subtracting its operation costs.

What is a Patent?

• A legal protection that gives inventors the sole right to make, use, or sell their inventions for a fixed number of years.

• A legal protection that gives creators and publishers the sole right to distribute, perform, or display their work.

• The desire to make a profit.

• The rights of those who own land, buildings, or other goods to use or dispose of their property as they choose.

Match the following

• Free Market Economy

• An economic system in which decisions about production and consumption are made by a powerful ruler or government.

• Command Economy

• An economic system in which economic decisions are left up to individual producers and consumers.

  Socialism - A political and economic philosophy based on collective or government ownership of a society’s resources and means of production, with the goal of achieving social and economic equality.

• Economic System

• A society’s way of coordinating the production and consumption of goods and services.

• Market Economy

• An economic system in which the workings of the market are not planned or directed.

A diagram that shows the circular movement of money, resources, and goods and services among households and producers in an economy.

Government-financed projects such as dams, highways, and bridges.

• Commercial real estate developments
• Public Works

• Non-profit community initiatives
• Private construction projects