Chapter 3: American Free Enterprise Flashcards Preview

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Flashcards in Chapter 3: American Free Enterprise Deck (25)
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1
Q

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

A

profit motive

2
Q

the concept that everyone can compete in the marketplace

A

open opportunity

3
Q

the concept of giving everyone the same legal rights

A

legal equality

4
Q

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

A

private property rights

5
Q

the concept that people may decide what agreements they want and enter to

A

free contract

6
Q

the concept that people may decide what and when they want to buy and sell

A

voluntary exchange

7
Q

the rivalry among sellers to attract customers while lowering costs

A

competition

8
Q

a private organization that tried to persuade public officials to act or vote according to group members’ interests

A

interest group

9
Q

laws requiring companies to provide full information about their products

A

public disclosure laws

10
Q

the concerns of the public as a whole

A

public interest

11
Q

the study of the behavior and decision making of entire economies

A

macroeconomics

12
Q

the study of the economic behavior and decision making of small units, such as individuals, families, and businesses

A

microeconomics

13
Q

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

A

gross domestic product (GDP)

14
Q

a period of macroeconomic expansion followed by a period of contraction

A

business cycle

15
Q

a commitment to the value of work and purposeful activity

A

work ethic

16
Q

the process used to produce a good or service

A

technology

17
Q

the part of the economy that involves the transactions of the government

A

public sector

18
Q

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

A

private sector

19
Q

someone who would not choose to pay for a certain good or service, but who would get the benefits of it anyway if it were provided as a public good

A

free rider

20
Q

a situation in which the market does not distribute resources efficiently

A

market failure

21
Q

an economic side effect of a good or serve that generates benefits or costs to someone other than the person deciding how must to produce or consume

A

externality

22
Q

an income level below that which is needed to support families or households

A

poverty threshold

23
Q

government aid to the poor

A

welfare

24
Q

direct payments of money to eligible poor people

A

cash transfers

25
Q

goods and services provided for free or at greatly reduced prices

A

in-kind benefits