The structures of methods and principles of a society uses to produce and distribute goods and services is _______ ______?
What are the 5 economic goals/societal values?
Efficiency, Freedom, Security and Predictability, Equity, and Growth
What are the 4 types of economic systems?
Free Market, Centrally Planned, Mixed, and Traditional
What is a market?
Any arrangement that allows buyers and sellers to exchange things
What is the reason that a market exists?
Markets eliminate the need for any one person to be self-sufficient
What is a free market based on?
It's based on what gets made, how it's made, and how much people can consume of the goods and services produced
What is a person/group of people living in a single residence?
What is an organization that uses resources to produce a product/service which it then sells?
What are the two things that keep a self-regulating marketplace functioning?
Competition and self-interest
What is a firm's number one incentive?
They seek to make higher profits by increasing sales
What is the "Invisible Hand"?
A term coined by Adam Smith to describe the self-regulating native of the marketplace
What three economic goals/societal values are advantages in a free market economy?
Economic Efficiency, Economic Freedom, and Economic Growth
How is centrally planned economy organized?
It's organized by what items to produce, how to produce them, and who gets them
What is an authoritarian government?
A government that limits individual freedoms and requires strict obedience from their citizens
What is heavy industry?
Heavy industry is the use of large capital investments to make chemical/steel
How does a government work in a FACTOR market?
Government firms purchase land, labor, and capital from households in the factor market
How does a government use taxes collected from households and firms?
They collect taxes from households and firms to provide funds to save a failing industry
What is the organization that uses resources to produce a product or service, which it then sells?
What is the struggle among producers for the dollars of consumers?
What is a doctrine that government generally should not intervene in the marketplace?
What is the amount of money a business receives in excess of its expenses?
What is a range of economic and political systems based on the belief that wealth should be distributed evenly throughout a society?
What is a set of government programs that protect people who face unfavorable economic conditions?
What is the concentration of productive efforts on a limited number of activities?
What is the power of consumers to decide what gets produced?
What is the hope of reward or fear of penalty that encourages a person to behave in a certain way?