2.1 Flashcards
1
Q
Economic System
A
Structure of methods and principles that a society uses to produce and distribute goods
2
Q
Factor payment
A
The income people receive in return for supplying factors of production
3
Q
profit
A
The excess money from expenses earned at a business.
4
Q
Safety net
A
Services the government provides for people on unfavorable economic conditions
5
Q
Standards of living
A
Level of economic prosperity
6
Q
innovation
A
Bringing new methods, products or ideas into use
7
Q
traditional economy
A
Economic system based on habits, customs and rituals deciding the three basic economic questions
8
Q
basic economic questions
A
What to produce, how to produce them, who consumes it
