Ch 2 Economics

the power of consumers to decide what gets produced

the concentration of efforts of individuals and businesses on a limited number of activities

industry that requires a large capital investment & produces items used in other industries Ex. Chemical industries

Give an example of a factor payment.

political system in which the govt owns and controls all resources & means of production & makes all economic decisions

Love for one’s nation

Examples of a safety net

Pure free markets do exist in the world

product markets provide finished goods to producers.

Competition benefits consumers by causing firms to sell higher-quality goods at lower prices.

Assembly lines provide unique tasks for each member on the line to do which is similar to specialization

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

product markets provide finished goods to consumers.

any arrangement that allows buyers and sellers to exchange things

the arena of exchange in which firms purchase the factors of production from households

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

Factor markets provide goods and services that are necessary to produce more goods and services

the doctrine that government generally should not intervene in the marketplace

large farm leased from the state to groups of peasant farmers Ex. had them in the Soviet Union

Traits of An Authoritarian Government