Economics

by its distribution of income

Is the structure of methods and principles a society uses to produce and distribute goods and services.

Are the income people receive in return for supplying factors of production in land, labor, or capital.

- how much money business receives in excess of expenses.

Sets of programs to protect people who face unfavorable economic such as lay offs injuries, a natural disaster.

Living of economic prosperity.

The process of bringing new methods or products or ideas into use.

Relies on habit custom or ritual to answer three economic questions.

Any arrangement that allows buyers and sellers to exchange things.

Is the concentration of the productive effort of individuals and businesses on a limited number of activities

A person or group of people living in a single residence.

An organization that uses resources to produce a product or service which it then sells.

...The arena and exchange in which house holds buy goods and services that firms produce.

The arena and exchange in which house holds purchase goods and services from firm

rely on habit, custom, or ritual to decide what to produce, how to produce it, and to whom to distribute it.

The central government makes all decisions about the production and consumption of goods and services.

economy economic decisions are made by individuals and are based on exchange, or trade.

are systems that combine tradition and the free market with limited government intervention.

its unique combination of social values and goals.

Grow through innovation

• In a free market economy, households and business firms use markets to exchange money and products. Households own the factors of production and consume goods and services.

Economic efficiency- It's a regulating free market economy responds efficiently to rapid change in conditions. Producers provide goods and services that consumers want at their own prices. Economic freedom- Workers can work where they want, people produce what they want and individuals can consume what they want. Economic Growth- Entrepreneurs are always seeking profitable opportunities, contributing new ideas and innovations, because companies encourage innovation. Additional goals- Free markets offer a wide variety of goods and services because producers have incentives to meet their customers desire.

The power to decide what to produce.

The invisible hand

No one is self sufficient.

Competition and self interest

The government owns both land and capital. The government decides what to produce, how much to produce, and how much to charge.

Is the doctrine that government generally should not interfere in the marketplace.

is a social and political philosophy based on the belief that democratic means should be used to distribute wealth evenly throughout a society.

Is a political system characterized by a centrally planned economy with all economic and political power resting in the hands of the government.

Central planning is unnecessary.

It works to accomplish specific goals.

Poor quality goods, shortages, and diminishing production.