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economic freedom

the ability to make our own economic decisions without interference from the government

full employment

an efficient economy strives for ___ ______

exists when all who want to work can find jobs.

economic equity

concerns fairness and justice. ___ ____ involves the fair and just distribution of a society’s wealth.Seeks to give everyone his or hers fair share of the economic pie.

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

economic growth

An economy is said to grow when it produces more and better goods and services. ______ desirable because over time it leads to an improved standard of living

economic  security

seeks to provide its less fortunate members with the support they need in terms of food, shelter, and health care to live decently.

economic  stability

means that the goods and services we count on - electricity on demand, food and clothing in the stores-are there when we want them.

economic  system

the way a society coordinates the production and consumption of goods and services

traditional economy

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

An economic system in which decisions about production and consumption are based on custom and tradition

command economy

decision about what, how, and for whom to produce are made by a powerful ruler or some other authority.

market economy

depends NOT on tradition or command to coordinate its activities but on the decisions of individual producers and consumers

free market economy

the workings of the market are not planned or directed, no-one tells the producers or consumers what to do

circular flow model

shows how money,goods, and resources circulate in a market economy.

Money comes in and goess out, this flow keeps the economy running

household

made up of a person or of a group of people living together

firm

an organization that uses these factors to make and sell goods and services

product market

in which goods and services are sold by firms and purchased by households. Mall, Supermarket

factor market

in which households sell their land, labor, and capital to firms.sometimes for wages.

factor payments

the funds paid to households-whether in the form of rent, wages, interest, or dividends

Income earned when an individual sells or rents a factor of production that he or she owns.Wages are ____ _____ made to workers in exchange for their labor

industrial revolution

inventions and manufacturing processes spurred the growth of industry. Market economies emerged in europe in 1700s and began to grow rapidly in the 1800s.this economic growth was the direct result of the ____ _____

capitalists

individual investors that grey wealthy by accumulating capital including machinery, factories, railroads, and the like.

capitalism

came to be synonymous with the free market economic system

socialism

a political and economic philosophy that calls for property to be owned by a society as a whole, rather than by individuals, for the equal benefit of all.

communism

final phase of socialism,Marx and Engels.

A political and economic system in which all property and wealth are owned by all members of a society.

economic planning

done by government committees of economists, production experts, and political officials.These central planning committees attempted to preform the functions of a market

mixed economy

both the government and individuals play important roles with regard to production and consumption

public works

government financed projects such as dams, highways, and sewer systems

transfer payments

it may also trasnfer some money back to households as payment for government benefits, EX. Social security checks, welfare payments, and unemplyment benefits.

free enterprise system

individuals own the factors of production and make decisions about how to use those factors within the framework of the law

An economic system in which the means of production are mostly privately owned and operated for profit

laissez-faire

a market that is relatively free of government intervention.”let them do”

contract

an agreement between a buyer and a seller

property rights

the rights of those who own land, buildings, or other goods to use or dispose of them as they choose.

intellectual property

refers to creations of the mind that have commercial value

patent

gives an inventor the sole right to make, use, or sell his or her invention for 20 years

copyright

similarly gives the creator of a literary or artistic work the sole right to reproduce, distribute, preform, or display the copyrighted work

profit

money earned by a business after subtracting its costs of operation.

profit motive

the desire to make profit