Topic 2: Free Enterprise and Other Economic Systems

level of economic prosperity.

the structure of methods and principles that a society uses to produce and distribute goods and services.

total value of all final goods and services produced in a country in a given year

Which is an Economic System?

Which of the following is an Economic Question?

property that is owned by individuals or companies, not by the government or the people as a whole

Government aid to the poor

A government licesnse that gives the inventor of a new product the exclusive right to produce & sell it

The process of bringing new methods, products, or ideas into use.

an individual’s own personal gain

a situation in which the free market, operating on its own, does not distribute resources efficiently

an economic system that relies on habit, custom, or ritual to decide the 3 economic questions.

a private organization that tries to persuade public officials to act in ways that benefit its members

describes a form of government that limits individual freedoms and requires strict obedience from its citizens

an economic system in which decisions on the three key economic questions are based on voluntary exchange in markets

the part of the economy that involves the transactions of individuals and businesses

Any arrangement that allows buyers and sellers to exchange things.

political system the government owns & controls all resources & means of production & makes all economic decisions

range of economic & political systems based on the belief that wealth should be distributed evenly throughout a society

What is an indicator of economic growth?

a government license that grants an author exclusive rights to publish and sell creative works

he part of the economy that involves the transactions of the government

the arena of exchange in which households purchase goods and services from firms

economic system in which decisions on the 3 key economic questions are based on voluntary exchange in markets

an economic system in which the government makes all decisions on the three key economic questions