Benefits of Free Enterprise
Promoting growth and Stability
Provide Public Goods
Providing a Safety Net
Vocabulary
100
America has been such an economic force for many reasons, this though is the main reason
What is the free enterprise system?
100
These last less than a year or continue for many years.
What is a business cycle?
100
Public goods are financed by this
What is public sector?
100
Income level below that which is needed to support families or households
What is poverty threshold?
100
Goods and services provided for free or at a greatly reduced rate.
What are in-kind benefits?
200
This basic principle of the Free Enterprise system is defined as the rivalry among sellers to attract customers while lowering costs.
What is competition?
200
The total value of all final goods and services produced in an economy is known as this.
What is GDP? Gross Domestic Product
200
Name two examples of public goods
What is roads, dams, national parks, military, firefighter, police, road construction, schools
200
This president created and started the welfare program
Who is Franklin Delano Roosevelt?
200
State and federal governments provide these which are direct payments to the poor, disabled, and retired people.
What are cash transfers?
300
The force that encourages people and organizations to improve their material well-being.
What is profit motive?
300
Policy makers seek these three main outcomes as they seek to stabilize the economy.
What is employment, growth, and stability?
300
This phenomenon is associated with public goods.
What is the 'free-rider problem'?
300
The spending on welfare increased during this Presidents time in office.
Who is Lyndon B. Johnson?
300
Someone who would not choose to pay for certain goods or services but would like to receive all benefits of it anyway.
What are free-riders?
400
Consumers join this to make their wishes known
What is interest groups?
400
A commitment to value of work and purposeful activity.
What is work ethic?
400
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?
400
These four programs provide direct cash transfers.
What is Temporary Assistance for Needy Families, Social Security, Unemployment insurance, and Workers compensation?
400
Improvements of this have allowed our economy to produce more output from the same or a smaller quantity of inputs or resources.
What is technology?
500
This requires companies to give consumers important information about their products.
What is public disclosure laws?
500
This is the engine that drives the free enterprise system.
What are inventions?
500
A situation in which the market, on its own, does not distribute resources efficiently.
What is market failure?
500
President Bush started these initiatives in 2001.
What are Faith-based incentives?
500
Allows people to decide what and when they want to buy and sell, rather than forcing them to buy or sell at particular times or at specific prices
What is voluntary exchange?
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