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ECO Topic 2 Voc Pt1
ECO Topic 2 Vocabulary Lessons 1,2,3,4 PEARSON 2016
| Term | Definition |
|---|---|
| economic system | the structure of methods and principles that a society uses to produce and distribute goods and services |
| factor payments | the income people receive in return for supplying factors of production |
| profit | the amount of money a business receives in excess of its expenses |
| standard of living | level of economic prosperity |
| innovation | the process of bringing new methods, products or ideas into use |
| traditional economy | an economic system that relies on habit, custom, or ritual to decide the three key economic questions |
| market | any arrangement that allows buyers and sellers to exchange things |
| specialization | the concentration of the productive efforts of individuals and businesses on a limited number of activities |
| free market economy | an economic system in which decisions on the three key economic questions are based on voluntary exchange in markets |
| household | a person or group of people living in a single residence |
| firm | an organization that uses resources to produce a product or service, which it then sells |
| product market | the arena of exchange in which households purchase goods and services from firms |
| Adam Smith | Scottish social philosopher; published The Wealth of Nations; believed competition and our own self-interest actually helped to keep the marketplace functioning |
| sef-interest | an individual’s own personal gain |
| incentive | the hope of reward or fear of penalty that encourages a person to behave in a certain way |
| competition | the struggle among producers for the dollars of consumers |
| centrally planned economy | an economic system in which the government makes all the decisions on the three key economic questions |
| command economy | another name for a centrally planned economy |
| socialism | a range of economic and political systems based on the belief that wealth should be evenly distributed throughout society |
| communism | a political system in which the government owns and controls all resources and means of production and makes all economic decisions |
| authoritarian | describing a form of government that limits individual freedoms and requires strict obedience from its citizens |
| private property | property that is owned by individuals or companies, not by the government or the people as a whole |
| intellectual property | private property that individuals have created such as books, songs, or movies can be protected by government laws |
| mixed economy | the market-based economic system in which the government is involved to some extent |
| economic transition | a period of change in which a nation moves from one economic system to another |
Created by:
cwarsing
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