C-3

Question 1

economic freedom

Answer 1

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

Question 2

full employment

Answer 2

all who want to work can find jobs

Question 3

economic equity

Answer 3

the fair and just distribution of a society’s wealth

Question 4

economic growth

Answer 4

desirable as overtime leads to an improved standard of living

Question 5

economic security

Answer 5

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

Question 6

economic stability

Answer 6

the goods and services we count on are there when we want them

Question 7

economic system

Answer 7

the way the society coordinates the production and consumptions of good and services

Question 8

traditional economy

Answer 8

custom and traditional dictate on what to produce

Question 9

command economy

Answer 9

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

Question 10

market economy

Answer 10

coordinate activities based on the decisions of individual producer and consumers

Question 11

free market economy

Answer 11

the workings of the market are not planned or directed

Question 12

circular flow model

Answer 12

this flow keeps the economy running

Question 13

household

Answer 13

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

Question 14

firm

Answer 14

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

Question 15

product market

Answer 15

goods and services are sold by firms and purchased by households

Question 16

factor market

Answer 16

households sell their land, labor, and capital to firms

Question 17

factor payments

Answer 17

funds paid to households; rents, wages, interest, or dividends

Question 18

Industrial Revolution

Answer 18

market economies emerged in europe during 1700s and 1800s

Question 19

capitalists

Answer 19

individual investors that grew wealthy by accumulating capital

Question 20

capitalism

Answer 20

synonymous with the free market economic system

Question 21

socialism

Answer 21

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

Question 22

communism

Answer 22

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

Question 23

economic planning

Answer 23

economic decisions are made or influenced by central government rather than by private individuals

Question 24

mixed economy

Answer 24

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

Question 25

public works

Answer 25

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

Question 26

transfer payments

Answer 26

social security checks, welfare payments, and unemployment benefits are some examples

Question 27

free enterprise system

Answer 27

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

Question 28

laissez-faire

Answer 28

to describe a market economy that is relatively free of government intervention

Question 29

contract

Answer 29

an agreement between a buyer and a seller

Question 30

patent

Answer 30

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

Question 31

copyright

Answer 31

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

Question 32

property rights

Answer 32

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

Question 33

intellectual property

Answer 33

the creation of the minds that have commercial value

Question 34

profit

Answer 34

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

Question 35

profit motive

Answer 35

the desire to make a profit that have commercial value