ECONOMIC QUESTIONS
LAISSEZ FAIRE
STANDARD OF LIVING
REDISTRIBUTION OF INCOME
INCENTIVE
MIXED ECONOMY
COMPETITION
PROFIT
INNOVATION
PRODUCT MARKET
FREE MARKETS
PLANNED ECONOMY
FACTOR PAYMENTS
a penalty or reward that motivates a person's behavior
private property and ownership of the factors of production with some government involvement; most countries have this type of economy
economic system where government decisions dominate
the part of the circular flow model where goods and services are bought and sold
money a firm pays for input costs or the factors of production (capital, land & labor)
the money a firm keeps after satisfying all its factor payments or input costs
the struggle among producers for consumers' dollars; encourages lower prices
a country's level of wealth and quality of life
using new technologies or ideas
what to make, how to make it and for whom to make it
a phrase that means let people do as they choose; government is "hands off"
an economic system where consumers and producers make decisions
in many socialist systems, income is directed away from higher earners and given to those based on need
