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17 Cards in this Set
- Front
- Back
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economic system |
the institutions, producers, consumers and other groups that make up and economic structure of a society, country, or other grouping |
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traditional economy |
economic system where roles are handed down from generation to generation and the basic questions are answered as they have been since the distant past |
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command economy |
the government Controls and the means of production and property and makes all decisions of a reduction in consumption |
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Market economy
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producers and consumers make economic decisions and the factors of production are privately owned
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mixed market economy |
most systems are makes and have some degree of governmental regulation and ownership economies are on a continuum |
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profit motive |
Drives production decisions in a free enterprise system |
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Equity
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fairness in the access to goods and services |
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Consumer sovereignty
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The idea that individuals are best judge of their needs and what is their best interests and that they indicate their choices by their spending decisions |
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public goods and services |
Items such as schools and defense, police and fire protection, roads and street lighting provided by the government |
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Regulation
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Adding rules or laws established by the government such as taxes, tariffs, subsidies, Federal Reserve guidelines, environmental protections, safety guidelines, and consumer protection |
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Deregulation
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Taking away the rules or laws on many industries such as the deregulation of transportation |
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Externality
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An unplanned cost or benefit of economic activity and production positive externality is a benefit negative externality is a cost |
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productivity |
The amount of goods and services produced in a given period of time |
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Inputs |
factors of production use to make specific goods and services |
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Output |
How much of a good or service that was produced with Inputs |
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Human capital |
Investment in the workforce and people such as Health Insurance training tuition for higher education and family leave an onsite day care and other items that enhance worker quality of life and productivity |
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Standard of living
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The quality of life of residents and workers in a society measured by per capita GDP and other lifestyle factors such as length of workday safety access to Health Care and literacy |
