Basics of Free Enterprise
Tracking Business Cycles
Public Goods
Providing a Safety Net
Key Terms
100
The force that encourages people and organizations to improve their material well being
What is profit motive
100
A period of macroeconomic expansion followed by a period of contradiction or decline.
What is business cycle?
100
The part of the economy that involves transactions of individuals and businesses.
What is the private sector?
100
An income level below which is needed to support families/households.
What is Poverty Threshold?
100
A situation where the market does not distribute resources efficiently.
What is market failure?
200
The concept that everyone can compete in the marketplace
What is open opportunity
200
The total value of all final goods and services produced in an economy.
What is Gross Domestic Product?
200
Someone who chooses no to pay for a certain good or service but still benefits as if it were a public good.
What is a free rider?
200
Direct payments of money to poor, disabled, and retired people.
What is a cash transfer?
200
Laws that require companies to include important facts about their products.
What are Public disclosure laws?
300
The concept that people can decide what and when they want to buy and sell
What is voluntary exchange?
300
The study of small units such as families, households, and businesses.
What is Microeconomics?
300
The part of the economy that involves transactions of the government.
What is public sector?
300
A general term that refers to government aid for the poor.
What is Welfare?
300
The process used to produce a good or service.
What is technology?
400
The concept that people may decide what agreements they want to enter into.
What is free contract?
400
The study of behavior and decision making of entire economies.
What is Macroeconomics?
400
An economic side effect that generates an effect on someone other than the decision maker.
What is an externality?
400
Includes Social Security, Medicare, and Medicaid.
What are Medical Benefits?
400
A commitment to the value of work and purposeful activity.
What is work ethic?
500
The concept of giving everyone the same legal rights.
What is legal equality?
500
The abbreviation for the calculation of the total value of all final goods and services in an economy.
What is GDP?
500
A shared good or service for which it would be impractical to make consumers pay individually and to exclude nonpayers.
What is public good
500
Government goods or services provided for free or reduced prices for poor people.
What is In kind benefits?
500
A private organization that tries to persuade public officials to act or vote according to the groups members.
What is an interest group?
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