Section 1-4 and Homework Flashcards Preview

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Flashcards in Section 1-4 and Homework Deck (38)
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1

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

Profit Motive

2

The concept that everyone can compete in the marketplace

Open Opportunity

3

The concept of giving everyone the same legal rights

Legal Equality

4

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

Private Property Rights

5

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

Voluntary Exchange

6

The rivalry among sellers to attract customers while lowering costs

Competition

7

A private organization that tries to persuade public officials to act or vote according to the group member's interest

Interest Group

8

Requiring companies to give customers important information about their products

Public Disclosure Laws

9

The concerns of the public as a whole

Public Interest

10

The study of the behavior and decision making of entire economics

Macroeconomics

11

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

Microeconomics

12

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

Gross Domestic Product (GDP)

13

A period of macroeconomic expansion followed by a period of contraction

Business Cycle

14

A commitment to the value of work and purposeful activity

Work Ethic

15

The process used to produce a good or service

Technology

16

A shared good or service for which it would be impractical to make consumers pay individuality and to include non payers

Public Goods

17

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

Public Sector

18

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

Private Sector

19

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

Free Rider

20

A situation in which the market does not distribute resources efficiency

Market Failure

21

An economic side effect of a good or service that generates benefits or costs to someone other than the person deciding how much to produce or consume

Externality

22

An income level below that which is needed to support families to households

Poverty Threshold

23

Government aid to the poor

Welfare

24

Direct payments of money to eligible poor people

Cash Transfers

25

Goods and services provided for the free or at greatly reduced prices

In-Kind Benefits

26

What constitutional guaranteed underline the American free enterprise system ?

The Bill of Rights to the United States constitution guarantees certain individual freedoms. For example, freedom of speech and freedom of religion which undermine the american free enterprise system

27

Explain at least three benefits of the free enterprise

Profit motive, open opportunity, and economic rights

28

Example of Macroeconomics and microeconomics

Macro-The Great Depression
Micro-the price of milk going up

29

How does gross domestic product provided a means to analyze economic growth ?

Economists can look at GDP's and predict a business cycle

30

How does welfare attempt to raise poor people's standard of living ?

It doesn't attempt to raise. The purpose is to provide individuals that have made mistakes or fallen own bad times through chance, the opportunity to pull themselves from their terrible situation