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ECONOMICS Mid-Term '15 > Chapter 3 > Flashcards

Flashcards in Chapter 3 Deck (15):
0

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

Profit Motive

1

The concept that people may decide what agreements they want to enter into

Free Contract

2

The struggle among producers for the dollars of consumers; the rivalry among sellers

Competition

3

Laws requiring companies to provide full information about their products

Public Disclosure Laws

4

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

Gross Domestic Product

5

A period of macroeconomic expansion followed by a period of contraction

Business Cycle

6

A commitment to the value of work and purposeful activity

Work Ethic

7

The process used to produce a good or service

Technology

8

A shared good or service for which it would be impractical to make consumers pay individually and to exclude nonpayers

Public Good

9

The part of the economy that involves the transactions of individuals and businesses

Private Sector

10

Someone who would not choose to pay for certain good or service

Free Rider

11

A situation in which the market does not distribute resources efficiently

Market Failure

12

An income level below which income is insufficient to support families or households

Poverty Threshold

13

Government aid to the poor

Welfare

14

Goods and services provided for free or at greatly reduced prices

In-Kind Benefits