Introduction to Economics Quiz 3 Review!!

The level of a country’s economic prosperity

Standard of Living

The structure of methods and principles that a society uses to produce & distribute goods & services.

Economic system

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

Innovation

What are the three key economic questions?

What does a society produce, How do they combine the factors of production, who gets to consume the different choices

The income people derive for supplying factors of production, like land, labor or capital

Factor payments

Organizations that use resources to produce a product or service, which it then sells.

Firms (also referred to as business firms)

The amount of money a business receives in excess of expenses, it’s the reward for taking the risk and starting a business.

Profit

A person or group of persons living n a single residence…frat houses don’t count, nor do jail cells or prisons.

Households

Any arrangement that allows buyers and sellers to exchange things, like Craig’s List, a vending machine…

A market

Where you can purchase or rent land, hire workers, borrow money to purchase capital. The want ads would be an example.

Factor Market

The area where households buy the goods & services the firms produce.

Product Market

What are the five economic goals of society, maybe not all the societies, but at least for ours, usually.

Economically efficient, wide range of economic freedom, security in our economic endeavors, fair for all consumers and households, and steady growth would be nice.

The End That’s it. There’s probably more than just this on the test, in fact I’m sure of it, but it’s getting late and I’m getting…zzzzzz