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Flashcards in Chapter 3 Deck (27)
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0
Q

Open opportunity

A

The concept that everyone can compete in the market place

1
Q

Profit motive

A

The force that encourages people and organizations to improve their material well-being

2
Q

Legal Equality

A

The concept of giving everyone the same legal rights

3
Q

Private property rights

A

The concept that people have the right and privilege to control their possessions as they wish

4
Q

Free contract

A

People may decide what agreements they enter into

5
Q

Public disclosure Laws

A

Requires companies to provide full info about the product

6
Q

Public Good

A

A shared good or service that is impractical to make consumers pay individually or to exclude from no payers

7
Q

Public Sector

A

Involves transactions of the government

8
Q

Private sector

A

In olives transactions of people or business

9
Q

Free rider

A

A person who receives a good or service but would still benefit if it were provided to the general public

10
Q

Market Failure

A

Situation where resource are not distributed efficiently

11
Q

Poverty threshold

A

Income level below that which is needed to support families or households

12
Q

Cash payments

A

Direct transfer of money to eligible poor people

13
Q

Social Security

A

Cash transfers to the elderly and disabled

14
Q

Worker’s Compensation

A

Cash to those injured on the job

15
Q

In kind benefits

A

Goods or services provided to those in need

Food giveaways/stamps, legal aide

16
Q

Medicare

A

Those over 65 or disabled

17
Q

Meidcaid

A

Those under 65 who are at a certain financial level

18
Q

Macroeconomics

A

Study of the behavior and decision making of entire economies

19
Q

Microeconomic

A

Study of economic behavior and decision making of small units families businesses

20
Q

GDP

A

Total value of all final goods and services produced in a particular economy

21
Q

What are the pillars of free enterprise?

A
Private property 
Specialization
Voluntary exchange 
Price system 
Market competition 
Entrepreneurship
Choice
22
Q

Private property

A

Incentive

23
Q

Specialization

A

Efficient

24
Q

Voluntary exchange

A

Choice

25
Q

Free enterprise system

A

Permits conduct of businesses with min gov interaction

26
Q

Lassez faire

A

Government should not interfere with the marketplace