Topic 2 Lessons 1&2 Key (Economics) Terms Review

Describes the structure a society uses to produce and distribute goods and services.

• market

• economic system

• factor payments

• planned economy

Keisha owns a hair supply store. At the end of the month, all the money she makes, minus her expenses is called what?

• revenue

• wages

• security

• profit

This image most accurately describes what type of economy?

• mixed

• traditional

• centrally planned

• free market

When there is a voluntary exchange of goods or services and individuals can privately own businesses, this describes what type fo economy?

• free market

• mixed

• centrally planned

• traditional

Dewalt, Apple, Chevy are all considered

• households

• factor market

• specilization

• firms

____________ is the motivating force in the free market; it is the push that leads people to act.

• Privatization

• Self-interest

• Competition

• Incentives

This is the struggle among producers for the dollars of consumers.

Producers or business owners engage in ________________ by providing higher-quality goods.

• non-price competition

• competition

• price incentive

• buying and selling

W.I.C., food stamps, social security, disability, and Medicaid are all examples of what?

• state assistance

• communism

• freedom

• safety nets

This "arrangement" allows buyers and sellers to exchange things.

• stores

• government

• market

• specialization