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Flashcards in Chapter 2- Section 2 Deck (21):
0

What are two kinds of goals people may share?

Economic and social goals

1

How many major kinds of goals are there?

Seven

2

What are the seven goals?

Economic freedom, economic efficiency, economic equity, economic security, full employment, price stability, and economic growth

3

What are three examples of economic freedom for individuals?

Choosing their occupations, employers, and how to spend money

4

What kind of economic freedom do business owners want?

Where and how to produce

5

What happens if resources are wasted?

Fewer wants and needs can be satisfied

6

Why must economic decision making be efficient

So benefits gained are greater than costs incurred

7

Equity stands for what?

Fairness

8

What are two examples of economic equity?

Equal pay for equal work and no false claims

9

What is a "lemon law"?

New-car buyers can return the car if they have to many repairs

10

What do American workers want protection from?

Layoffs and illness

11

A federal program of disability and retirement benefits that covers most working people

Social Security

12

What kind of protection does Social Security offer?

Disability and retirement

13

What happens when people work?

They earn income and make goods and services for others

14

What happens when people do not have jobs?

They can't support themselves or families nor provide goods output

15

What is inflation?

A rise in the general level of prices

16

What happens to people on fixed incomes when there is inflation?

Bills become harder to pay and the future becomes uncertain

17

What is a fixed income?

An income that does not increase even though prices go up

18

Why is economic growth needed as population grows?

To meet everyone's needs

19

What is the opportunity cost of a policy protecting a domestic industry, such as shoe manufacturers?

There becomes a limited amount of shoe choices

20

What is the trade-off in increasing the minimum wage?

It increases the cost of production