Hon. Econ. - Chapter 2 - Economic Systems Flashcards

307654546	Economic System	Method used by society to produce and distribute goods and services.	0
307654547	Factor Payments	Income people receive for supplying factors of production.	1
307654548	Patriotism	Love of one's country.	2
307654549	Safety Net	Government programs that protect people experiencing unfavorable economis conditions	3
307654550	Standard of living	Level of economic prosperity	4
307654551	Traditional economy	Economic system that relies on habit, custon, or riual to decide questions of production and consumption of goods and services.	5
307654552	Market Economy	Economic system in which decisions on production and consumption of goods and services are based on voluntary exchange in markets.`	6
307654553	Centrally Based Economy	Economic system in which the central government maks all decisions on the production and consumption of goods and services.	7
307654554	Command Economy	Economic system in which a central authority is in command of the economy; a centrally planned economy.	8
307654555	Mixed Economy	Market-based economic system with limited government involvement.	9
307654556	Market	Place we can buy and sell things.	10
307654557	Specialization	Concentration of the productive efforts of individuals and firms on a limited number of activities.	11
307654558	Household	Person or group of people living in the same residence.	12
307654559	Firm	Company or Business	13
307654560	Factor Market	Market in which firms purchase the factors of production from households.	14
307654561	Profit	Financial gain made in transaction	15
307654562	Product Market	Market in which households purchase the goods and services that firms produce.	16
307654563	Self-interest	One's own personal gain.	17
307654564	Incentive	An expectation that encourages people to behave in a certain way.	18
307654565	Competition	The struggle among producers for the dollars of consumers.	19
307654566	Invisible Hand	The unseen force driving the free market economies, when each person seeks to benefit himself/herself, but in doing so everyone benefits.	20
307654567	Consumer Sovereignity	The power of consumers to decide what gets produced.	21
307654568	Socialism	Social and political philosphy based on the belief that deomocratic means should be used to distribute wealth evenly throughout a society.	22
307654569	Communism	Political system characterized by a centrally planned economy with all economic and political power resting in the hands of the central government.	23
307654570	Authoritarian	Requiring strict obedience to an authority, such as a dictator.	24
307654571	Collective	Large farm leased from the state to groups of peasant farmers.	25
307654572	Heavy industry	Industry that requires a large capital investment and that produces items used in other industries.	26
307654573	Laissez Faire	The doctrine that states that government generally shouldn't intervene in the marketplace	27
307654574	Private Property	Property owned by individuals or companies, not by the government or the people as a whole.	28
307654575	Free Enterprise System	Another name for "capitalism" or "free market," an economic system based on profit motive, voluntary exchange, private property rights, competition, freedom for producers and consumers.	29
307654576	Continuum	A range with no clear divisions.	30
307654577	Transition	Period of change in which an economy moves away from a centrally planned economy toward a market-based system.	31
307654578	Privatize	To sell state-run firms to individuals.	32
1569466513	Capitalism	Another name for "free market" or "free enterprise".	33
2708654410	the Economy	The total wealth and resources of a community or nation; all producers, distributors, and consumers of goods and services in a local, regional, or national community	34