Economics: Chapter 2 Section 1 Answers – Flashcards
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the structure of methods and principles that a society uses to produce and distribute goods and services
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economic system
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the income people receive in return for supplying factors of production
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factor payment
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the amount of money a business receives in excess of its expenses
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profit
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a set of government programs that protect people who face unfavorable economic conditions
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safety net
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level of economic prosperity
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standard of living
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the process of bringing new methods, products, or ideas into use
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innovation
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an economic system that relies on habit, custom, or ritual to decide the three key economic questions
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traditional economy
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-What goods and services should be produced? -How should these goods and services be produced? -Who consumes these goods and services?
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three key economic questions
