Unit 1 Econ Alive - Ch 3 Review

Question 1

system where the government and people play an role in the production & consumption of goods.

Accepted Answer

market economy

Question 2

people own factors of production & make decisions about how to use them within the law

Accepted Answer

free enterprise

Question 3

the desire to make money off your business

Accepted Answer

profit motive

Question 4

political & economic system in which all property & wealth are owned by all members of society.

Accepted Answer

communism

Question 5

Market where households sell their their land, labor, capital to firms

Accepted Answer

factor market

Question 6

the fairness with which an economy distributes its resources and wealth.

Accepted Answer

economic equity

Question 7

custom and tradition dictates what to produce, how to produce it, and for whom

Accepted Answer

traditional economy

Question 8

ability to make own economic decisions without interference

Accepted Answer

economic freedom

Question 9

decisions about what, how and for whom to produce are made by a powerful or some authority

Accepted Answer

command economy

Question 10

a political & economic philosophy that calls for property to be owned by society as a whole

Accepted Answer

socialism

Question 11

an organization that makes, produces and sells goods or services.

Accepted Answer

firm

Question 12

the result of using resources in a way that produces the maximum amount of goods and services

Accepted Answer

economic efficiency

Question 13

includes freedom, equal opportunity, property rights, profit motive, limited government

Accepted Answer

free enterprise characteristics

Question 14

the less fortunate members of society should get the economic support they need to live

Accepted Answer

economic security

Question 15

government-financed (payed for) projects such as dams, bridges, highways, and sewer systems

Accepted Answer

public goods

Question 16

individual investors who grew wealthy during the industrial revolution by accumulating capital.

Accepted Answer

capitalists

Question 17

an agreement between a buyer and a seller.

Accepted Answer

contract

Question 18

money earned by a business after subtracting cost of operation

Accepted Answer

profit

Question 19

a market in which goods and services are sold by firms and purchased by households

Accepted Answer

product market

Question 20

No one single person, business, or government agency tells producers or consumers what to do.

Accepted Answer

free market

Question 21

the fairness with which an economy distributes its resources and wealth.

Accepted Answer

economic equity

Question 22

govt payments to a household or firm for which the payer receives no good or service in return

Accepted Answer

transfer payment

Question 23

the result of using resources in a way that produces the maximum amount of goods and services

Accepted Answer

economic efficiency

Question 24

a person or group of people living together

Accepted Answer

household

Question 25

diagram that shows the movement of money, resources, goods & services in households & producers

Accepted Answer

circular flow

Unit 1 Econ Alive - Ch 3 Review

Questions 25

Unit 1 Econ Alive - Ch 3 Review

Questions 25