Questions and Answers
What is a mixed economy?
What is the minimum wage?
Lowest wage that can be paid to most workers
What is inflation?
Rise in the general level of prices
What is social security?
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What does consumer sovereignty refer to?
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What is competition in economic terms?
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Who is an entrepreneur?
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What is voluntary exchange?
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What is the profit motive?
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What is a modified free enterprise economy?
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Study Notes
Economic Systems
- Mixed economy combines elements of command, traditional, and market economies, allowing for a diverse approach to economic management.
Labor and Compensation
- Minimum wage is the lowest allowable payment to most workers, ensuring a baseline income level.
Economic Indicators
- Inflation refers to the general increase in prices, eroding purchasing power over time.
Social Programs
- Social Security is a federal program providing retirement benefits to the majority of working individuals, aimed at supporting financial stability in old age.
Market Dynamics
- Consumer sovereignty emphasizes the power of consumers to influence market trends and dictate production based on demand.
Competition
- Competition represents the ongoing struggle among sellers to attract consumers, promoting better quality and variety in products and services.
Entrepreneurship
- An entrepreneur is an individual who organizes and manages land, capital, and labor resources to generate profit, playing a crucial role in economic innovation.
Trade Principles
- Voluntary exchange denotes economic activities that occur as a result of free choice, essential for fostering trade and cooperation.
Motivational Factors
- The profit motive acts as a driving force encouraging individuals and businesses to enhance their material well-being through economic activities.
Regulated Economies
- A modified free enterprise economy allows free economic interactions among individuals while being subject to government regulations, balancing freedom with oversight.
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Description
Test your knowledge on key terms from Chapter 3 of your Economics course. This set of flashcards covers essential concepts such as mixed economy, minimum wage, inflation, and social security. Perfect for revision and studying for upcoming exams!