Chapter 2 Vocabulary 1-17

Question 1

Economic system where supply/demand help people make financial decisions and allocate resources

Accepted Answer

market economy

Question 2

Income that does not increase even though prices increase

Accepted Answer

fixed income

Question 3

Role of the consumer as ruler of the market when determining the types of goods/services made

Accepted Answer

consumer sovereignty

Question 4

Driving force that encourages people to improve their material well-being

Accepted Answer

profit motive

Question 5

Act of buyers and sellers freely engaging in market transactions

Accepted Answer

voluntary exchange

Question 6

Extent to which a person is better off financially at end of a period of time than beginning

Accepted Answer

profit

Question 7

Economy where competition is allowed to flourish with a minimum of gov't interference. US Econ

Accepted Answer

free enterprise

Question 8

Economic system characterized by a central authority that makes the major economic choices

Accepted Answer

command economy

Question 9

Federal program of disability and retirement benefits that covers most working people

Accepted Answer

social security

Question 10

Free enterprise economy where people do economic affairs freely with some gov't regulation

Accepted Answer

2 of the choices

Question 11

Individuals own and control their possessions as they wish

Accepted Answer

private property rights

Question 12

Economic system where private citizens own/use factors of production in order to get profits

Accepted Answer

capitalism

Question 13

Struggle among sellers to attract consumers while lowering costs

Accepted Answer

competition

Question 14

Economic system in which allocation of scarce resources result from ritual, habit and custom

Accepted Answer

traditional economy

Question 15

Organized way a society provides for the wants and needs of its people. (choose answer slowly)

Accepted Answer

2 of these choices

Question 16

Rise in the general level of prices

Accepted Answer

inflation

Questions 16