Basic Principles of Free Enterprise
the rivalry among sellers at attract customers while lowering costs
What's the definition of competition
a commitment to the value of work and purposeful activity
How do you describe work ethic?
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
What is a free rider?
government aid to the poor
What is the definition of welfare?
the process used to produce a good or service
What is technology?
the concept that everyone can compete in the marketplace
What is an Open Opportunity?
the study of the behavior and decision making of entire economies
What is the definition of macroeconomics?
a shared good or service for which it would be impractical to make consumers pay individually and to exclude nonpayers
What is the definition of public good?
goods and services provided for free or at greatly reduced prices
What are in-kind benefits?
private organizations that tries to persuade public officials to act or vote
What are interest groups?
a force that encourages people and organization to improve their well-being
Profit motive
gross domestic product; the total value of all final goods and services produced in a particular economy
What does GDP stand for and what it is?
a situation in which the market does not distribute resources efficiently
what happens in a market failure?
direct payments of money to eligible poor people
what are cash transfers?
What is the definition of public interest?
the concept that people may decide what and when they want to buy and sell
What is a free contract?
a period of macroeconomic expansion followed by a period of contraction
what is the business cycle?
the part of the economy that involves the transactions of the government
What is the public sector?
an income level below that which is needed to support families or households
How would you describe a poverty threshold?
the concept that people may decide what and when they want to buy and sell
What is voluntary exchange?
the concept that people have the right and privilege to control their possessions as they wish
What are private property rights?
the study of the economic behavior and decision making of small units, such as individuals, families, and businesses
What is microeconomics?
the part of the economy that involves the transactions of individuals and businesses
What is the private sector?
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
What is externality?
laws requiring companies to provide full information about their products
What are public disclosure laws?