Econ Chapter 2 Vocab Flashcard

Front

Structure of methods and principles a society uses to produce and distribute goods

Back

Economic System

Front

Income received for supplying production factors

Back

Factor Payments

Front

Level of economic prosperity

Back

Standard of living

Front

Relies on habit, custom, or ritual to answer basic economic questions.

Back

Traditional Economy

Front

Money a business receives beyond expenses.

Back

Profit

Front

Bringing new methods, products, or ideas into use

Back

Innovation

Front

Programs protecting people from economic hardships like layoffs or disasters.

Back

Safety Net

Front

Arrangement for buyers and sellers to exchange goods.

Back

Market

Front

Concentration of productive efforts on limited activities

Back

Specialization

Front

Answers to the three basic economic questions are made by voluntary exchange in markets.

Back

Free Market Economy